Research On The Inverted U-shaped Relationship Between Financialization And Enterprise Innovation

In recent years,there is a general tendency of financialization in real enterprises,which has caused many scholars to worry and discuss the phenomenon of real economy “turning from real to virtual”.Based on the data of Chinese Ashare non-financial companies from 2010 to 2020,this paper discusses and interprets the impact of financialization on corporate innovation,and explains its transmission mechanism.Firstly,domestic and foreign literature and theories are sorted out and summarized briefly.Secondly,establish a benchmark model to explore the dynamic relationship between financialization and corporate innovation Secondly,the influence of the difference of financial asset investment structure on enterprise innovation is discussed.Thirdly,financing constraints and executive compensation incentives are introduced as transmission channels to test the mechanism of action.Finally,study deeply the influence of financialization on enterprise innovation from different perspectives.The empirical results show that:(1)There is a significant inverted U-shaped curve relationship between financialization and enterprise innovation,and the inflection point of financialization is 0.1222.(2)An inverted U-shaped relationship between long-term equity investment and corporate innovation is still valid,and the inflection point value is 0.1677,while holding other financial assets has a significant inhibitory effect on enterprise innovation.(3)The mediating effect of financing constraint and executive compensation incentive on financialization and enterprise innovation is established.(4)For enterprises with different operating performance,internal control,shareholding ratio of institutional investors and property right nature,financialization has different impact on enterprise innova tion.The possible innovation points of this paper are as follows:(1)Explore the connection between financialization and enterprise innovation from a dynamic perspective.(2)Taking financing constraints and executive compensation incentives as the transmission path,it clarifies the mechanism of financialization affecting enterprise innovation.(3)From different perspectives to explore the differences of financial impact on enterprise innovation.