Abstract
How to promote corporate research and development is a particularly important issue under the background of the economy being diverted out of the real economy. By selecting samples of 1221 Chinese A-share non-financial listed companies from 2010 to 2019, this paper examines the impact of financialization on research and development through the panel threshold regression model. Then, the moderate range of the impact of financialization on corporate research and development is measured, as well as their heterogeneity is also analyzed. The research shows the following results: first, there is a dynamic relationship and moderate range between financialization and corporate research and development. Financialization has a positive effect on corporate research and development when the level of financialization exceeds 0.4748. Secondly, from further heterogeneous research, financialization has a threshold effect on research and development among enterprises with a high level of research and development. In addition, there is a promoting effect on corporate research and development only when their financialization level exceeds 0.0097 in enterprises with a high level of research and development. Therefore, in order to promote corporate research and development, financialization of non-financial enterprises should make adjustment and regulation according to the action and direction of moderate range.
Highlights
Corporate financialization has made the economy diverted out of the real economy; at the same time, it weakened the corporate R&D
We propose the following hypotheses: Hypothesis 1: There is a dynamic relationship between financialization and enterprise R&D, namely, as the level of financialization changes, the impact degree and direction of financialization on corporate R&D are different, the level of financialization has a moderate range
In order to test the dynamic relationship between financialization and corporate R&D, and to measure the moderate range of the impact of financialization on R&D, this paper uses the panel threshold regression model to conduct econometric tests
Summary
Corporate financialization has made the economy diverted out of the real economy; at the same time, it weakened the corporate R&D. As for ST and PT companies, they belong to continuous loss enterprise with poor continuing operation ability and not have the general characteristics of financial asset allocation Based on these treatments, with the constraints of time and type, we choose 1221 A-share listed companies in China with a total of 12210 annual observation data as our research sample. In order to test the dynamic relationship between financialization and corporate R&D, and to measure the moderate range of the impact of financialization on R&D, this paper uses the panel threshold regression model to conduct econometric tests. It further indicates that high R&D level has greater demand for R&D investment, and their financial assets allocation is more motivated by asset reserve, as well as financialization plays more significant role in promoting R&D
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
