Empirical Study On The Influence Of China's Banking Market Structure On Enterprise Innovation

After 30 years of gradual reform,Chinese financial system has made remarkable achievements.In the process of reform,due to the gradual elimination of some banking market control measures,China's banking market structure has changed significantly.Small and medium-sized banks,represented by city commercial banks and stock-joint commercial banks,expanded rapidly,which enhanced competition in banking market.So the distribution and allocation of financial resources has changed.With the deepening of economic reform,China's economy has entered the new normal,shifting from high growth to high quality development.At this stage,the driving factors for China's economic growth have also undergone fundamental changes.According to economists such as Schumpeter and Solow,innovation is the root of economic development.In order to ensure the stable and sustainable operation of the economy,the Chinese government has repeatedly issued documents emphasizing the necessity of implementing an innovation-driven development strategy.Against the background of the country's vigorous support for the development of innovative enterprises,China's comprehensive innovation capability has gradually increased.However,compared with developed country,the level of innovation of Chinese enterprises is still low,mainly because of financing constraints.Therefore,it is of great significance to study whether the changing of banking market structure will promote enterprise innovation activities for the sustainable development of China's economy.In terms of research perspectives,by taking the deregulation policy of remote market entry of stock-joint commercial banks and city commercial banks as the starting point,this paper study the influence of banking market structure on the innovation behavior of enterprises before and after the policy issuance.From the perspective of the overall architecture,this paper mainly contains five parts.The first part is the introduction,which briefly describes the research background and significance of this paper,summarizes relevant literature at home and abroad,and proposes innovative points and shortcomings while sorting out the overall framework.The second part is the analysis of the theoretical mechanism.This part expounds the relevant theories on the financing constraints of enterprise innovation,and analyzes the mechanism of banking market structure affecting the innovation behavior of enterprises.It is concluded that the increasingly competitive banking market structure is beneficial to enterprises.The third part starts with the development and changes of China's banking market and analyzes the structure of China's banking market by measuring the Herfindahl-Hirschman index and CR4 indicators.The results show that the competition in China's banking market has intensified and the banking market structure has changed after the release of entry threshold for banks in remote places.The monopoly of state-owned Banks has significantly reduced.The status of joint-stock commercial banks and city commercial banks has been constantly upgraded.The results here also provide data support for the following empirical evidence.The last two parts correspond to empirical analysis,conclusions and recommendations.In empirical aspect,based on different market structure before and after the deregulation of remote market entry of banks,this paper uses financial data of listed enterprises from 2007 to 2018 to establish panel probit model and zinb model for analyzing and come to a conclusion.When the expansion of joint-stock commercial banks and city commercial banks was limited,the intensification of banking market competition has a linear promoting effect on enterprise innovation.But the incentive effect on the innovation activities of private enterprises is not significant.After the deregulation policy of remote market entry,The improvement of structural competition among banks has a nonlinear effect of inhibition followed by promotion on innovation of enterprises.At last,this paper summarizes the above empirical results and provide reasonable recommendation on optimizing banking market structure and other aspects.