A study of the impact of financialization of enterprises on their innovative capacity

Authors

  • Shurui Fan

DOI:

https://doi.org/10.54691/bcpbm.v50i.5615

Keywords:

corporate innovation; financialization of firms; nature of property rights; degree of competition.

Abstract

Based on the financial data of A-share non-financial listed enterprises from 2007 to 2019, this paper empirically examines the impact of corporate financialization on the innovation ability of enterprises. It is found that corporate financialization will have an inhibitory effect on the innovation ability of enterprises. Through further research, it can be seen that corporate financialization of non-state-owned enterprises has a more obvious inhibitory effect on the innovation ability of enterprises, and the inhibitory effect of financialization on the innovation ability of low-competitive industries is more obvious than that of high-competitive industries. The study concludes that non-financial enterprises should focus on improving their own innovation ability to achieve long-term development rather than seeking short-term profits by financializing a large amount of their assets through corporate financialization.

Downloads

Download data is not yet available.

References

Xiao Yanguo, Liu Xin, Tong Wenfeng et al. R&D intensity, patenting behavior and firm performance[J]. Research in Science,2019,37(7):1153-1163.

Peng Yuchao, Han Xun, Li Jianjun. Economic policy uncertainty and corporate financialization [J]. China Industrial Economy, 2018, (1).

Bonfiglioli, A. (2008). Financial integration, productivity and capital accumulation. Journal of International Economics, 76(2), 337-355.

Tian Mengyuan. Controlling shareholders' equity pledges and corporate inefficient investment-an analysis based on the background of financial mismatch[J]. Business Research,2019(12):28-36.

Seo H J, Kim H S, Kim Y C. Financialization and the slowdown in Korean firms' R&D investment[J]. Asian Economic Papers,2012,11(3): 35-49.

Xie Jiazhi, Wang Wentao, Jiang Yuan. Financialization of manufacturing, government control and technological innovation[J]. Economics Dynamics,2014(11):78-88.

Duan Junshan, Zhuang Xudong. Financial Investment Behavior and Corporate Technological Innovation-Motivational Analysis and Empirical Evidence[J]. China Industrial Economy,2021(1):155-173.

Zhai Guangyu, Jiang Meijun, Duan Qiushuang. Financialization of Real Enterprises and Physical Capital Investment-An Empirical Analysis Based on Listed Manufacturing Companies from 2009-2018[J]. Economics Dynamics,2021(1):85-104.

Zhai Guangyu, Jiang Meijun, Duan Qiushuang. Financialization of Real Enterprises and Physical Capital Investment-An Empirical Analysis Based on Listed Manufacturing Companies from 2009-2018[J]. Economics Dynamics,2021(1):85-104.

Guo Lili,Xu Shan. Financialization, Financing Constraints and Business Performance - An Empirical Study Based on Chinese Non-Financial Enterprises[J]. Management Review,2021,33(6):53-64.

Du Y, Wang T. Non-CEO executive independence and financialization of real firms[J]. Journal of Shanghai University of Finance and Economics, 2022, 24(3): 45-60, 122.

Wu Jun, Chen Liping. The relationship between the degree of financialization and the change of leverage ratio of non-financial firms-Evidence from A-share listed companies and debt-issuing non-listed companies[J]. Financial Forum, 2018,23(1)

Wang, X.Y. Does CEO financial background promote financialization of real firms? [J]. Business Accounting,2020(14):30-36.

Jiang Lingduo,Lu Yi. Does intensified market competition boost leverage of state-owned enterprises[J]. China Industrial Economy,2018(11):155-173.

Downloads

Published

2023-09-22

How to Cite

Fan, S. (2023). A study of the impact of financialization of enterprises on their innovative capacity. BCP Business & Management, 50, 269-278. https://doi.org/10.54691/bcpbm.v50i.5615