Financialization Of Enterprises,Management Equity Incentives And Continuous Innovation Of Enterprises

Building an efficient and sustainable innovation system can provide a strong driving force for the economy to achieve high-quality development,and maintaining continuous innovation requires long-term stable cash flow investment.In recent years,the situation at home and abroad is complex and severe,and the yield of the financial industry is much higher than the rate of return on physical investment,so enterprises invest more funds in the financial industry,and the phenomenon of "corporate financialization" has emerged.This has attracted increasing attention from both the practical and academic communities.This is because when enterprises allocate more financial assets,it will not only have an impact on the continuous innovation activities of enterprises,but also have an impact on high-quality economic development,and also have an impact on economic stability.Based on the existing research,this thesis uses a combination of literature analysis and empirical research.Firstly,this thesis analyzes the current research status by combing the relevant literature of domestic and foreign scholars on enterprise financialization,enterprise sustainable innovation and management equity incentives,and on this basis,uses resource base theory,incentive theory and entrusted agent theory to analyze the impact of enterprise financialization on enterprise sustainable innovation from the theoretical level.At the same time,since as the management of the enterprise,it has the right to control the resources of the enterprise,including the allocation of corporate financial assets and the investment of the enterprise’s sustainable innovation resources,which will also have an impact on the continuous innovation output of the enterprise,so the management equity incentive is used as the regulating variable to explore the regulating role of equity incentive on the continuous innovation of the enterprise financialization.In the empirical study,this thesis uses nonfinancial and non-real estate A-share listed companies in Shanghai and Shenzhen from 2010 to 2021 as research samples to establish a regression model,and obtains the following results:(1)The deepening of corporate financialization is not conducive to the continuous innovation of enterprises,whether it is the sustainability of enterprise innovation investment or the sustainability of enterprise innovation output,corporate financialization has a negative effect;(2)Management equity incentives can alleviate the inhibitory effect of corporate financialization on the continuous innovation of enterprises;(3)From the perspective of financial term structure,compared with short-term financialization,long-term financialization has a stronger inhibitory effect on the continuous innovation of enterprises;Management equity incentives can better mitigate the impact of long-term financialization on the continuous innovation of enterprises;(4)From the perspective of the regions where enterprises are located,the inhibition effect of corporate financialization on the continuous innovation of enterprises is more serious in the central and western regions;Management equity incentives also play a more mitigating role in the Midwest;(5)From the perspective of mechanism path,enterprise financialization inhibits continuous innovation by improving corporate financial risks,inhibiting the sustainability of enterprise business performance and crowding out innovation resources.This thesis explores the impact of corporate financialization on the continuous innovation of enterprises and the moderating effect of management equity incentives,enriches the research on the economic consequences of enterprise financialization and the factors affecting the continuous innovation of enterprises,and enriches the research on corporate governance within management equity incentives.