An Empirical Study Of Corporate Financialization On Innovation Investment

At present,the problem of "from the real to the virtual" in China's economy has aroused widespread concern in academia.Relevant research at home and abroad shows that the increase in the proportion of corporate asset finance will significantly inhibit the real economic investment of enterprises,so is corporate finance also the reason for the decrease of corporate innovation investment? Scholars have not reached a consensus.Some scholars believe that corporate finance is conducive to improving corporate profitability,reducing financing constraints,and increasing the capital source of innovation investment.Another part of scholars think that the demand for innovative investment capital is large,the output is uncertain,and enterprises prefer financial assets with high return on investment.In order to explore the relationship between enterprise financialization and innovation investment,this paper collects the panel data of financial statements of A-share non-financial enterprises in Shanghai and Shenzhen stock markets from 2010 to 2016.On the basis of financing priority theory,preventive savings theory,financial repression and financial deepening theory,and financing constraint theory,this paper uses literature research and empirical analysis to solve this problem.Through regression analysis,we can draw the following conclusions: first,with the increase of the proportion of corporate financial assets,the investment in innovation will be significantly reduced,that is,corporatefinance will inhibit the investment in innovation.Second,the domestic macro market environment is complex and changeable,the uncertainty of economic policy is increasing,the external risk is increasing,and the financing cost is high.The enterprises will be in the financial assets with preventive motivation,lower financing constraints and strong investment flexibility.It is verified that the uncertainty of economic policy will aggravate the crowding out effect of enterprise financing on innovation investment.Third,compared with high-tech enterprises,non high-tech enterprises are more sensitive to the changes of economic policies,which will reduce innovation investment to ease financing constraints.After discussing the heterogeneity by industry,we find that the uncertainty of economic policies will aggravate the crowding out effect of financialization.Secondly,considering the imbalance of China's economic development,the ability to deal with economic policy changes is different,and the influence of regional economic policy uncertainty,we find that the adjustment effect of economic policy uncertainty is more significant in the central and western regions.Finally,some suggestions are put forward for this conclusion: first,to reduce the systematic risk of the real economy and improve the rate of return on industrial investment;second,to improve the supervision mechanism of the capital market and prevent over financing.Third,relevant departments should pay attention to the flexibility of policies when making policies to ensure thecompetitive advantages of enterprises.The research of this paper is helpful for enterprises to understand the microeconomic consequences of asset finance,improve the internal investment structure of enterprises,improve the level of corporate governance,and provide a reference for the government to guide the economy from the virtual to the real.