A Study On The Impact Of Financialization Of Manufacturing On Firms' Technological Innovation: Based On Data From Chinese A-Share Listed Companies

Abstract

Enterprise technological innovation is of great importance for China to enhance its innovation competitiveness and promote sustainable and stable national economic growth under the new normal. There have been some literatures on the effect of financialization of real estate enterprises on enterprise technological innovation, but no unified conclusion has been reached. Few researches have conducted any analysis on the mechanism between those two, and there are many problems with the research methodology used. Based on the data of Chinese listed manufacturing enterprises from 2010 to 2020, this research accurately esti[1]mated and tested the technological innovation effect of financialisation of manufacturing enterprises and its effect mechanism with a mixed panel OLS, the Tobit model and the mediating effects model. The results demonstrated that the financialisation of manufacturing enterprises significantly constrains technological innovation, and that such effect acts through the channels of exogenous financing, liquidity supply, earnings driven and R&D resource plundering. Finally, based on the findings above, corresponding recommendations were made to the authorities and manufacturing enterprises.