Research On The Impact Of Entity Enterprise Financialization On Enterprise Innovation

In recent years,the phenomenon of economic financialization has gradually swept the world along with the process of globalization.Our country also has the problem of structural imbalance between real economy and virtual economy.Constrained by the overall economic slowdown,fierce external competition and other environmental restrictions,many real enterprises invest a large amount of capital in the financial industry,showing a certain trend of "real to virtual".On the one hand,corporate financialization enables enterprises to diversify investment,and the additional financial income obtained can also increase the cash flow reserves of enterprises and help the sustainable and healthy development of the main business of enterprises.On the other hand,some enterprises rely too much on the financial industry,and the financial business squeezesor even abandons the main business.Based on this,this thesis makes an in-depth analysis of the influence of the financialization of entity enterprises on the innovation ability of enterprises,and puts forward corresponding suggestions.This thesis first reviews the relevant literature on corporate financialization and corporate innovation,and analyzes the influence mechanism of corporate financialization on corporate innovation from the perspective of reservoir effect and crowding out effect.This thesis mainly obtains information through the company’s annual report,Wind database,CSMAR database,CNRDS database and other channels,collects and collates the financialization and innovation data of the pharmaceutical manufacturing industry,and evaluates the overall degree of financialization and innovation of the pharmaceutical manufacturing industry.In this thesis,case analysis,trend analysis and comparative analysis are adopted to select Yunnan Baiyao,a leading enterprise in the pharmaceutical manufacturing industry,as the case company.Firstly,the company’s business situation and financialization process are reviewed,and then the degree of financialization of Yunnan Baiyao from 2012 to 2021 is measured,and the motivation for the financialization of Yunnan Baiyao is summarized.After that,we collected data related to innovation such as R&D intensity during 2012-2021,analyzed the influence of enterprise financialization on enterprise innovation from the perspective of innovation input and innovation output,and finally verified the relevant influencing mechanism.The thesis found:(1)Moderate enterprise financialization can play the role of "reservoir" to promote enterprise innovation input,but long-term high degree of financialization is easy to make enterprises become dependent on financial income,and eventually lead to the crowding out effect of enterprise innovation,that is,insufficient R&D expenditure and R&D personnel input,and the gap between enterprises in the same industry.The crowding out effect is further transmitted to the innovation output by affecting the innovation efficiency of enterprises,resulting in the decline of the innovation output of enterprises.(2)The financialization of entity enterprises affects enterprise innovation mainly through the influence of financing constraints,risk taking and the investment substitution effect of financialization.Moderately holding financial assets with strong liquidity can alleviate financing constraints and guarantee the capital sustainability of enterprise innovation.A high degree of corporate financialization will lead to the intensification of financing constraints and reduce the level of corporate risk taking,making enterprises more cautious about high-risk and long-term R&D and innovation investment.In addition,the financialization of enterprises will occupy the attention space of the management,and the short-term wealth effect of financialization will also make the investment focus of enterprises shift,thus producing the investment substitution effect on R&D and innovation.This thesis makes suggestions for case companies and government departments respectively.The company shall reasonably control the scale of financial investment and strengthen the supervision and evaluation of financial investment decisions;We will set up a performance evaluation mechanism for innovation,optimize the earlywarning system for innovation risks,and stimulate the vitality of enterprises for innovation.The government should improve the financial system,enhance the ability of financial services entity;Strengthen financial regulation to curb excessive speculation by enterprises;Optimize the innovation environment and guide enterprises to innovate actively;We will deepen supply-side structural reform,promote innovation-driven,high-quality supply and create new demand,and shift the economy from virtual to real.