A Study Of The Impact Of Social Insurance Premiums On The Innovation Persistence Of Enterprises

Social insurance is an important means of regulating social income distribution and safeguarding people’s livelihood.From the official introduction of the Social Insurance Law of the People’s Republic of China in 2010 to its revision in 2018,it has highlighted the great importance China attaches to building a social insurance system.In order to counteract the downward pressure of the economy at home and abroad and to enhance the innovative vitality of enterprises,China has introduced a series of "tax and fee reduction" policies in the context of promoting high-quality economic development.As one of the "tax and fee reduction" policies,the special feature of social insurance is that social insurance affects both the financial capital and human capital of enterprises,so what is the effect of social insurance fee reduction policy? As an important indicator to measure the long-term quality development of the economy,innovation sustainability not only takes into account the high risk and long-cycle characteristics of enterprise innovation,but also reflects the ability of enterprises to accumulate and maintain long-term innovation in terms of technological innovation.Therefore,this paper takes the social insurance premiums of enterprises as the entry point for analysis to explore whether social insurance premiums affect the sustainability of enterprise innovation and to explore the mechanism of its role.This study has important practical implications for the government to improve and perfect the "tax and fee reduction" policy,stimulate enterprise innovation,and effectively match the improvement of people’s livelihood with the economy.This paper first summarizes the definitions and theories of social insurance and corporate innovation sustainability,and systematically compares the relevant literature to identify research gaps,and then proposes research hypotheses through theoretical analysis.Secondly,using the relevant data of A-share listed companies in Shanghai and Shenzhen as a sample,we apply multiple linear regression analysis and other empirical tests to examine the impact of social insurance premiums on innovation sustainability of enterprises and the mechanism role played by financing constraints,employee wage levels,and R&D staff ratio in the middle;finally,we explore whether there are differences in the impact of social insurance premiums on innovation sustainability in different types of enterprises and different environments.The study finds that social insurance premiums inhibit firm innovation persistence;exploring its mechanism of action reveals that social insurance premiums inhibit firm innovation persistence mainly by increasing firms’ financing constraints,lowering employees’ wages,and reducing firms’ R&D staff.Further analysis shows that there are heterogeneous differences in the effects of social insurance premiums on innovation sustainability across different types of enterprises and different macro environments: at the enterprise level,the inhibitory effect of social insurance premiums is stronger in high-tech enterprises;at the macro environment level,the inhibitory effect of social insurance premiums is stronger in regions with poorer legal institutional environment and in regions with lower economic policy uncertainty;extended research It is found that the inhibitory effect of social insurance premiums on strategic innovation persistence is stronger compared to substantive innovation persistence.