Institutional Investor Visits,Financing Constraints And Corporate Innovation Investment

As one of the main driving forces of economic development,innovation plays a huge role in economic growth.However,compared with developed countries,there is still a significant gap in the intensity of my country's innovation input.Therefore,it is of great significance to explore the key factors that can affect enterprise innovation input.In addition,in the capital market,the status of institutional investors is becoming more and more important.Compared with ordinary investors,institutional investors often have certain information advantages.In addition,institutional investors can transfer the public and private information they obtained to relevant investors in a unique way,which is conducive to the benign transmission of information in the market.At present,institutional investors' visiting has become one of the most effective ways for institutional investors to obtain private company information.In addition,relevant studies have found that financing constraints caused by information asymmetry can affect corporate innovation,and institutional investors conducting visits on companies can effectively reduce information asymmetry between companies and ordinary investors,It also eases corporate financing constraints,and strengthens the role of institutional investors in internal and external supervision and management of the enterprise.Will institutional investors' visits activities improve corporate financing constraints,And will it raise their innovation investment level? Are institutional investors' visits ways to promote corporate innovation investment by alleviating corporate financing constraints?The research mainly analyzed those problems.The research sample of this paper is mainly the survey data of institutional investors disclosed by China's A-share listed companies from 2013 to 2017,using multiple linear regression and other methods to empirically analyze the impact of institutional investors' visits on corporate investment in innovation.Relevant research results show that institutional investors can improve the information asymmetry between investors and enterprises to a certain extent,which is conducive to increasing the external financing of enterprises and thus incentivizing enterprises to increase investment in innovation intensity.In addition,in view of the particularity of the shareholding structure under my country's special economic system,the nature of the enterprise's property rights may also be subject to different financing constraints,which may make the impact of institutional investors' visits on enterprises' inputs on innovation to some extent.Therefore,this paper divides the all samples to examine the differences among the impacts of institutional investor surveys on the inputs on innovation by enterprises with different property rights.The results show that the increase in the concentration of institutional investors' visits has a more obvious effect on easing the financing constraints of non-state-owned enterprises,and in turn,the stronger the role of promoting innovation investment.This may be due to the more severe financing constraints faced by non-state-owned enterprises,which makes institutional investors visiting the greater the marginal role of promoting the level of innovation investment by easing corporate financing constraints.Therefore,for non-state-owned enterprises institutional investors' visits are more conducive to the improvement of corporate innovation investment.The above results are still valid after a series of robustness and endogenous tests were conducted.In addition,this paper also analyzes the heterogeneity of the impact of institutional investors' visits on corporate innovation investment under different market concerns.The results show that the higher the market attention,the greater the demand for more relevant information from ordinary investors.As a result,Institutional investors can alleviate the information asymmetry between investors and enterprises through visits,which is conducive to improving the financing environment of enterprises,and enterprises can be encouraged to increase their level of innovation investment.That is to say,the institutional investor visit has a stronger role in promoting the innovation investment of the enterprise when the market is highly concerned.Secondly,this paper also studies the heterogeneity of the institutional investors' visits on the innovation investment of the enterprise under different agency costs.The results show that the institutional investors' visits can effectively suppress the increase in the company's earnings management level due to higher agency costs and promote the improvement of the company's innovation level.Therefore,compared with companies with low agency costs,institutional investors' visits are more conducive to improving the innovation investment level of companies with higher agency costs,that is,institutional investors' visits are more conducive to alleviating the financing constraints of companies with higher agency costs and promoting their The improvement of innovation investment level;in addition,this paper also studies the adjustment effect of institutional shareholding ratio on institutional investors' visits and enterprise innovation investment.It is found that when the institutional shareholding ratio is higher,with the increase in the concentration of institutional investors' visits,the financing constraints of enterprises can be more effectively alleviated,and the promotion of innovation investment levels of enterprises will be stronger.That is to say,the proportion of institutional shareholding has played a positive role in promoting the visits of institutional investors and improving the level of innovation investment of enterprises.Finally,after fully elaborating and analyzing the relevant theoretical analysis and empirical results,this article puts forward relevant policy recommendations based on the corresponding research conclusions,and analyzes the limitations of this article and the future research direction as a whole.It also gives proper consideration to the limitations of this article and the future research directions.