Research On The Impact Of The Moderation Of Financialization On Innovation Investment In Advanced Manufacturing Enterprises

Vigorous development of advanced manufacturing is an important element of China’s manufacturing power.However,there are still some key core technologies “stuck” in some advanced manufacturing fields in China,and the industrial base is restricted by others,which will enhance the independent innovation capability of advanced manufacturing industry in a prominent position.The advanced manufacturing industry is often limited by the lack of funds to carry out R&D activities,so how to ensure a stable supply of innovation funds to improve the innovation capacity of advanced manufacturing industry has become an important issue.At the same time,China’s financial and real estate industries continue to have high profit margins,and advanced manufacturing enterprises have also turned their attention to financial investment to improve their own financial difficulties.In recent years,academics have also paid attention to the phenomenon of large allocation of financial assets by real enterprises and generally formed the view that the financialization of enterprises hinders the development of innovative activities.In fact,on the one hand,financial assets act as a “capital reservoir” for enterprises,retaining a certain amount of liquidity for them and smoothing innovation investments;on the other hand,excessive financialization not only fails to inject new funds for innovation,but also may encroach on R&D expenditures.Therefore,whether advanced manufacturing firms,which are the main force of innovation,are at an appropriate level of financialization may have two opposite effects on their innovation funds.Based on the “promotion theory”,“disincentive theory”,the theory of preventive savings,the theory of financial adequacy,and the theory of innovation,we firstly analyze the relationship between financial adequacy and innovation investment in advanced manufacturing enterprises,and further elaborate the role of financial adequacy and innovation investment in advanced manufacturing enterprises.The path is further elaborated,and the corresponding research hypothesis is proposed.Subsequently,we selected the advanced manufacturing companies listed in Shanghai and Shenzhen A-shares in China from 2011 to 2021 as the samples,and used the publicly available financial data to conduct empirical tests to screen the financialization appropriateness of advanced manufacturing companies and construct unbalanced panel data for regression analysis.On the basis of this analysis,we explore the mechanisms of financialization of advanced manufacturing companies under two scenarios of“moderate” and “excessive”,and explore the internal and external factors that can regulate the relationship between excessive financialization and innovation investment.Finally,heterogeneity is discussed at two levels: ownership nature and life cycle.The study finds that:(1)the optimal level of financialization exists in advanced manufacturing enterprises,and the more the level of financialization deviates from the optimal value,the more it will adversely affect the innovation investment of enterprises.(2)Underfinancialization in advanced manufacturing industry mainly increases the investment in innovation by increasing the liquidity reserve of enterprises,while over-financialization discourages the investment in innovation by increasing the reliance on financial channels for profit.(3)Government subsidies and management equity incentives can alleviate the crowding-out effect of excessive financialization on innovation investment in advanced manufacturing industries.(4)Different property rights and life cycles affect the relationship between financial appropriateness and innovation investment in advanced manufacturing firms.Based on the above research findings,relevant suggestions are made at the government and enterprise levels: the government should continue to optimize the quality and efficiency of financial services to the real economy,and improve the regulatory system related to enterprise financialization to guide the sustainable and healthy development of enterprises;advanced manufacturing enterprises should improve internal governance,allocate resources scientifically and reasonably,increase the intensity of innovation,and enhance innovation capability.