Financialization and Innovation Extrusion of Entity Enterprises from the Perspective of Market Competition
[an error occurred while processing this directive]
Abstract Taking China's A-share non-financial listed companies from 2009 to 2021 as samples, this paper studies the impact of financial asset holding behavior of entity enterprises on enterprise innovation, and focuses on the regulatory role of market competition. The results show that the holding of financial assets by entity enterprises significantly squeezes out enterprise innovation, while market competition plays a positive moderating role. With the improvement of the degree of competition, the extrusion effect of financialization on innovation is gradually weakened, but as the degree of competition exceeds the case of moderate competition, the extrusion effect of financialization on innovation is gradually enhanced, that is, compared with the case of high competition and high monopoly, moderate market competition can better weaken the extrusion effect of financialization on enterprise innovation. Mechanism analysis shows that the situation of high competition or high monopoly will aggravate the financial profit motivation of enterprises, which makes financialization more significantly squeeze out innovation. The extrusion effect of financialization on enterprise innovation is stronger in state-owned enterprises, low-profit enterprises and low-growth enterprises, while the regulatory effect of market competition is more obviously reflected in non-state-owned enterprises, high-profit enterprises and high-growth enterprises. The conclusion of this paper provides a policy idea for dealing with the problem from reality to deficiency of real enterprises from the perspective of market competition.
HU Qiuyang,WU Zihao. Financialization and Innovation Extrusion of Entity Enterprises from the Perspective of Market Competition. Economic Survey, 2023, 40(5): 0125.
2023, Vol. 40 
[an error occurred while processing this directive] | [an error occurred while processing this directive]
