Research On The Impact Of Enterprise Innovation On Default Risk

With the transformation and development of the domestic economy,all kinds of enterprises in the market are developing and growing,the demand for funds is increasing,and the scale of corporate debt is also expanding.At the same time of China’s economic transformation,the difficulties of enterprise operation have gradually become prominent,debt risks have gradually been exposed,the number of debt defaulting entities has gradually increased,and the amount of defaults has also expanded.To further expand the scale of corporate liabilities,more attention should be paid to the company’s asset structure and debt ratio to avoid the risk of corporate default caused by excessive debt,so it is necessary to deeply analyze the influencing factors of enterprise default,and timely analyze the default risk of existing enterprises to find a way to prevent and resolve risks.In the context of the country’s vigorous promotion of innovation-driven development strategy,enterprises are paying more and more attention to the role of innovation,in order to better enhance their competitiveness and expand the proportion of product market,they will actively carry out innovative research and development activities,and innovation output is also constantly improving.In order to better encourage enterprise innovation and help enterprises alleviate the financing pressure of innovative R&D activities,local governments usually provide enterprises with a series of support incentives such as direct subsidies,tax incentives,and scientific research incentives to promote their development.However,most of the existing literature research on firm innovation focuses on its influencing factors and the impact of innovation on firm value and firm performance.Risk studies of innovation also focus on the risks inherent in innovation activities.The analysis of the pros and cons of enterprise innovation on the enterprise as a whole not only needs to study the value brought by innovation to the enterprise,but also needs to measure the impact of innovation activities on the default risk of the enterprise.However,whether enterprise innovation can reduce the risk of corporate default,what type of enterprise has a more obvious effect,and the impact mechanism also need to be further studied.Based on information asymmetry theory and signal theory,this paper analyzes the relationship and mechanism between enterprise innovation and enterprise default risk,and puts forward research hypotheses.This paper constructs a model based on the samples of listed companies on China’s Growth Enterprise Market from 2009 to2021,conducts empirical tests on the whole sample,technology-based enterprises and non-technology-based enterprises,studies the impact of enterprise innovation on enterprise default risk,discusses the mechanism and process of enterprise innovation,further analyzes the role of enterprise innovation in affecting default risk,and explores the role of government subsidies and financing constraints and corporate leverage between enterprise innovation and enterprise default risk.Finally,this paper also conducts the robustness test by the two-stage least squares method,changes the measurement method of the interpreted variable,and selects a specific sample.The results show that:(1)enterprise innovation can reduce the risk of enterprise default,and there is industry heterogeneity,and the role of enterprise innovation in reducing default risk is more significant in science and technology industries,but innovation in non-science and technology industries may increase the default risk.(2)Enterprise innovation to reduce the risk of default is partly achieved by obtaining government subsidies,that is,government subsidies play a partial intermediary role.(3)Financing constraints and corporate leverage are not conducive to enterprise innovation and reduce the risk of default,and enterprises should make their own asset-liability ratio lower than the leverage threshold when conducting innovation financing.