Financing Constraints,Institutional Investor Holdings And Corporate Innovation Sustainability

At present,China's economic development has entered a new normal,and we must implement an innovation-driven strategy to accelerate and nurture new momentum for development.Strategic emerging industries have received widespread attention as a key area for cultivating new kinetic energy for development and forming future competitive advantages.However,in recent years,the overall development of strategic emerging industries has shown a downward trend,and both industrial R&D expenditure and industrial financing have shown a downward trend.In order to effectively alleviate the difficulty of industrial financing,a series of policies such as increasing the connection between government and banks,improving regional industrial support plans and financing channels,have been introduced to support industrial development,including encouraging institutional investors to participate in industrial venture investment and equity investment.In the context of tightening overall debt financing,the paper focuses on whether the financing constraints faced by companies in strategic emerging industries will hinder the sustainability of corporate innovation,how does the institutional investor shareholding affect the relationship between financing constraints and the sustainability of corporate innovation,and will there be differences in the effects of heterogeneous institutional investor holdings?This has a certain meaning.The paper selects 415 companies listed in the A-shares of strategic emerging industries from 2013 to 2018 as research samples to explore the relationship between financing constraints,institutional investor holdings,and the sustainability of corporate innovation.First,the paper combs through the relevant literature,and defines the concepts of strategic emerging industry listed companies,financing constraints,institutional investors,and the sustainability of corporate innovation.The paper expounds the theories related to research,and on this basis,analyzes the logical relationship between financing constraints,institutional investor holdings and the sustainability of corporate innovation.Then,the paper puts forward three sets of research hypotheses and constructs three sets of regression models.Using System GMM to carry out regression analysis on the sample data,the empirical conclusions about financing constraints,institutional investor holdings and corporate innovation sustainability are obtained.The study found that: strategic emerging industries listed companies have continuousinnovation input and innovation output,but financing constraints will hinder the continuity of innovation input and innovation output;institutional investor shareholding can alleviate the hindrance of financing constraints on the sustainability of corporate innovation input and innovation output to a certain extent,among which,stable institutional investor holdings help to alleviate the hindrance of financing constraints on enterprise innovation input and output sustainability,but trading institutional investors cannot hold such a role.Finally,the paper puts forward countermeasures and suggestions according to the research conclusion.The paper clarifies the external governance effects of institutional investors,expands the research on financing constraints and the sustainability of corporate innovation,provides recommendations for companies in China's strategic emerging industries to ease financing constraints and enhance the sustainability of technological innovation,and provides guidance for promoting the healthy and sustainable development of China's strategic emerging industries.