The Research Of The Influence Of Banking Competition On Enterprise Innovation

China’s economy has shifted from high-speed growth to high-quality development,optimizing the allocation of financial resources and improving the ability to serve the real economy,which is the source power for promoting the transformation and upgrading of enterprises and enhancing China’s economic development level and international competitiveness.The indirect financing environment dominated by commercial banks in China shows that the distribution of credit resources of commercial banks is an important source of innovative funds for enterprises.Based on this,this paper uses the data of listed companies and branches of the banking industry in China from 2011 to 2020 to explore the impact of banking competition on enterprise innovation,and uses the OLS model for empirical analysis:(1)Can competition in the banking industry significantly promote corporate innovation?(2)Does banking competition promote corporate innovation by increasing the availability of corporate credit to alleviate corporate financing constraints? Does banking competition foster corporate innovation by reducing the cost of corporate credit financing to ease corporate financing constraints?(3)According to the differences in corporate property rights and industry factors,is the competition in the banking industry more significantly promoting innovation in private enterprises and capital-intensive industries? According to the difference in the type of bank,which type of commercial bank competition is more conducive to corporate innovation?(4)As far as the internal and external environment of enterprises is concerned,is there a positive adjustment effect between the regional financial development level and the incentive of enterprise management in the impact of banking competition on enterprise innovation?The empirical results show that:(1)the benchmark regression results show that competition in the banking industry can significantly promote enterprise innovation;(2)the mechanism analysis results show that competition in the banking industry can alleviate the financing constraints of enterprises and thus promote enterprise innovation,mainly by improving the availability of corporate credit and reducing the cost of credit financing;(3)the empirical results of heterogeneity show that compared with state-owned enterprises,banking competition can promote private enterprise innovation more than labor-intensive and technology-intensive industries.Competition in the banking sector can promote innovation in capital-intensive industries;compared with large stateowned commercial banks and local small and medium-sized banks,the competition of joint-stock commercial banks can promote enterprise innovation;(4)The results of the adjustment effect test show that there is a positive regulatory effect in the impact of external high-level regional financial development and internal management incentives on enterprise innovation in the banking competition.Finally,based on empirical conclusions and combined with China’s national conditions,five policy suggestions are put forward:(1)optimize the competitive structure of the banking industry and promote enterprise innovation;(2)improve the financing environment for enterprises,increase credit availability and reduce credit financing costs;(3)solve the financing problems of private enterprises and attach importance to the difference in industry innovation needs;(4)adhere to the differentiated market positioning of commercial banks to avoid disorderly expansion and vicious competition of commercial banks;(5)improve the level of regional financial development and strengthen the incentive of corporate management.Provide a good external environment and internal management mechanism for enterprise innovation.