Research On The Impact Of Financial Flexibility On Dual Innovation Investment Under The Adjustment Of Analysts’ Attention

In today’s world,economic and social development increasingly relies on innovation.From the national level,innovation is an important means to improve its comprehensive competitiveness;From the enterprise level,innovation is the foundation for maintaining vitality and achieving sustainable development.Innovation requires long-term and sustained investment by enterprises.In the complex context of the volatile international economic situation and the implementation of China’s innovation driven development strategy,enterprises are facing high uncertainty.Enterprises can reserve certain financial flexibility to cope with the uncertainty of the external economic environment and internal development process,which is conducive to ensuring the innovation investment of enterprises.According to the dual innovation theory,the innovation investment of enterprises can be divided into two types: exploratory innovation investment and development innovation investment.The two types of innovation investment have their own characteristics and requirements,and the requirements for financial flexibility reserves of enterprises are also different.In addition,financial flexibility can also bring about certain principal-agent issues,providing convenience for executives’ egoistic behavior.As an external force,the degree of attention analysts pay to the enterprise can affect the enterprise’s attitude towards innovation and the direction in which they use financial flexibility.Therefore,when studying the relationship between financial flexibility and dual innovation input,analyst attention is included in the research scope.Firstly,this article reviews the literature on financial flexibility,analyst attention,and dual innovation investment at home and abroad.Secondly,relevant concepts are defined,and based on environmental uncertainty theory,information asymmetry theory,financing constraint theory,and principal-agent theory,theoretical analysis and assumptions are made on the relationship between financial flexibility and exploratory innovation investment and development innovation investment,as well as the regulatory role of analyst attention in it.Thirdly,we selected Shanghai and Shenzhen A-share listed companies from 2014 to 2021 as samples and conducted empirical analysis using multiple regression methods.The results show that financial flexibility can significantly promote exploratory innovation investment and development innovation investment,and has a stronger role in promoting exploratory innovation investment;Analysts’ attention positively regulates the relationship between financial flexibility and investment in exploratory and developmental innovation.Divide the sample enterprises into two groups according to the nature of property rights: state-owned enterprises and non-state enterprises.Further research finds that the promotion effect of financial flexibility on exploratory innovation investment and the regulatory effect of analysts’ attention are significantly established in both groups of samples;However,the promotion effect of financial flexibility on development innovation investment and the regulatory effect of analysts’ attention are only significantly established in non-state owned enterprises.Finally,based on the results of this study,suggestions are proposed to promote enterprise innovation investment from the perspectives of both government and enterprises.