Research On The Impact Of Corporate Financing Structure On Innovation Investment Under Capital Market Opening

The report of the 20 th Party Congress emphasized that "innovation is the first driving force".Enterprise innovation is characterized by long cycle and high risk.As a necessary resource for all innovation activities,it is crucial for companies to have access to funds for continuous innovation activities.Capital market opening is an important part of the development of the capital market,helping to improve China’s international competitiveness and providing support for economic development.The "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect" trading system has expanded the investment scope of domestic investors and Hong Kong investors as well as the financing channels of enterprises.In the context of capital market opening,it is important to explore what impacts the financing structure will have on innovation inputs.This paper selects A-share listed companies in Shanghai stock market and Shenzhen stock market from 2015-2021 as the research sample to investigate the impact of corporate financing structure on innovation investment under the capital market opening.This paper first adopts a fixed-effects model to empirically test debt financing and equity financing respectively,and then uses the ratio of equity financing to debt financing as a measure to investigate the impact of corporate financing structure on innovation investment.Secondly,this paper test the moderating role of capital market opening in the impact of corporate financing structure on innovation inputs and choose to use the lagged period of the explanatory variables and the replacement of the sample period for robustness testing.Finally,this paper conducts heterogeneity tests by factor intensity and industry competition subsamples with the perspective of innovation demand.This paper finds that:(1)Debt financing inhibits the level of innovation investment,while equity financing significantly enhances the level of innovation investment.The higher the percentage of equity financing,the more inclined the firms are to make innovation investment.(2)Capital market opening enhances the inhibiting effect of debt financing on innovation investment and also enhances the promoting effect of equity financing on innovation investment.(3)Compared with firms with low innovation demand,the impact of debt financing and equity financing on innovation investment of firms with high innovation demand is more significant,and the impact of capital market opening is also more significant.Based on the empirical findings,this paper puts forward policy suggestions from three aspects: from the perspective of national policy,the opening of the capital market should be continuously promoted to improve the corporate financing environment;from the perspective of government,relevant laws and regulations should be established and improved to promote the deep integration of "industry-university-research";from the perspective of enterprises,the quality of information disclosure should be improved,and the proportion of equity financing should be increased to maintain the innovation vitality of enterprises.From the perspective of enterprises,the quality of information disclosure should be improved,and the proportion of equity financing should be increased to maintain the vitality of enterprise innovation.It is evident from this paper that capital market opening can enhance the impact of corporate financing structure on innovation investment,especially the promotion effect of equity financing on innovation investment,which provides reference for promoting capital market opening,optimizing financing structure and promoting corporate innovation.