Sustainable development is a key issue of global concern, and countries around the world are striving to promote green development. From the perspective of financial asset allocation motivation, this paper explores the impact of financial asset allocation on green innovation based on the data of A-share listed non-financial companies from 2011 to 2021. First, there is an inverted U-shaped relationship between the proportion of financial asset allocation and the green innovation of physical enterprises, that is, as the proportion of financial asset allocation increases, the green innovation output of enterprises first increases and then decreases. After robustness testing, the conclusion still holds. Second, further testing of the intermediary mechanism shows that the moderate holding of short-term financial assets by real enterprises can increase the output of green innovation by alleviating financing constraints, which is manifested as the "reservoir" effect. The "crowding out" effect plays a leading role when overallocation of financial assets reduces liquidity supply and capital expenditure, which in turn reduces green innovation output. Third, in the test of financial asset allocation preference, it is found that the short-term financial assets held by enterprises mainly play a "reservoir" effect, that is, they tend to be "preventive" motives. Holding long-term financial assets mainly exerts a "crowding out" effect, that is, tends to "seek profits" motives. Finally, there are differences in the impact of financial asset allocation on green innovation output among enterprises with different property rights, different monetary policies and different social responsibilities.
Citation: Jun Duan, Tingting Liu, Xiaoran Yang, Hua Yang, Yunwei Gao. Financial asset allocation and green innovation[J]. Green Finance, 2023, 5(4): 512-537. doi: 10.3934/GF.2023020
Sustainable development is a key issue of global concern, and countries around the world are striving to promote green development. From the perspective of financial asset allocation motivation, this paper explores the impact of financial asset allocation on green innovation based on the data of A-share listed non-financial companies from 2011 to 2021. First, there is an inverted U-shaped relationship between the proportion of financial asset allocation and the green innovation of physical enterprises, that is, as the proportion of financial asset allocation increases, the green innovation output of enterprises first increases and then decreases. After robustness testing, the conclusion still holds. Second, further testing of the intermediary mechanism shows that the moderate holding of short-term financial assets by real enterprises can increase the output of green innovation by alleviating financing constraints, which is manifested as the "reservoir" effect. The "crowding out" effect plays a leading role when overallocation of financial assets reduces liquidity supply and capital expenditure, which in turn reduces green innovation output. Third, in the test of financial asset allocation preference, it is found that the short-term financial assets held by enterprises mainly play a "reservoir" effect, that is, they tend to be "preventive" motives. Holding long-term financial assets mainly exerts a "crowding out" effect, that is, tends to "seek profits" motives. Finally, there are differences in the impact of financial asset allocation on green innovation output among enterprises with different property rights, different monetary policies and different social responsibilities.
| [1] |
Baron RM, Kenny DA (1986) The Moderator -Mediator Variable Distinction in Social Psychological research: Conceptual, strategic, and statistical considerations. J Pers Soc Psychol 51: 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173 doi: 10.1037/0022-3514.51.6.1173
|
| [2] |
Bernanke BS, Gertler M (1995) Inside the Black Box: The Credit Channel of Monetary Policy Transmission. J Econ Perspect 19: 27–48. http://doi.org/10.1257/jep.9.4.27 doi: 10.1257/jep.9.4.27
|
| [3] |
Bonfiglioli A (2008) Financial Integration, Productivity and Capital Accumulation. J Int Econ 76: 337–355. http://doi.org/10.2139/ssrn.931862 doi: 10.2139/ssrn.931862
|
| [4] | Cai W, Zeng C, Hu Z (2015) Enterprise Groups, Monetary Policy, and Cash Holding. Financ Res 2: 114–130. |
| [5] | Cai W, Li Q (2019) Research on the Dual Impact of Environmental Regulation on Enterprise Ecological Technology Innovation. Res Manag 40: 87–95. |
| [6] |
Chen L, Yang J (2022) Does the allocation of corporate financial assets inhibit green technology innovation? Financ Dev Res 7: 15–23. http://doi.org/10.19647/j.cnki.37-1462/f.2022.07.002 doi: 10.19647/j.cnki.37-1462/f.2022.07.002
|
| [7] |
Duan J, Zhuang X (2021) Financial Investment Behavior and Enterprise Technology Innovation: Motivation Analysis and Empirical Evidence. China Ind Econ 1: 155–173. http://doi.org/10.19581/j.cnki.ciejournal.2021.01.009 doi: 10.19581/j.cnki.ciejournal.2021.01.009
|
| [8] | Du Y, Sui X (2021) Pledge of controlling shareholder equity and financialization of physical enterprises: from the perspective of "hollowing out" and transfer of control. Account Res 2: 102–119. |
| [9] |
Du Y, Zhang H, Chen J (2017) The impact of financialization on the future main business development of physical enterprises: promoting or inhibiting. China Ind Econ 12: 113–131. http://doi.org/10.19581/j.cnki.ciejournal.20171214.007 doi: 10.19581/j.cnki.ciejournal.20171214.007
|
| [10] |
Gehringer A, Growth (2013) Productivity and Capital Accumulation: The Effects of Financial Liberalization in the Case of European Integration. Int Rev Econ Financ 25: 291–309. http://doi.org/10.1016/j.iref.2012.07.015 doi: 10.1016/j.iref.2012.07.015
|
| [11] |
Guo L, Xu S (2021) Financialization, Financing Constraints, and Business Performance: An Empirical Study Based on Chinese non-financial Enterprises. Manag Rev 33. http://doi.org/10.14120/j.cnki.cn11-5057/f.2021.06.005 doi: 10.14120/j.cnki.cn11-5057/f.2021.06.005
|
| [12] |
Huang X, Cha Y (2022) Research on the Impact of Environmental Policy Innovation in China on Urban Green Competitiveness. China Soft Sci 08: 140–150. http://doi.org/10.3969/j.issn.1002-9753.2022.08.013 doi: 10.3969/j.issn.1002-9753.2022.08.013
|
| [13] |
Huang X, Wu Q, Wang Y (2018) Financial Asset Allocation and Corporate Financial Risk: "Preparedness" or "Abandoning Capital to Pursue the Last". Financ Res 44: 100–112. http://doi.org/10.16538/j.cnki.jfe.2018.12.008 doi: 10.16538/j.cnki.jfe.2018.12.008
|
| [14] | Hu H, Dou B (2020) Wang Aiping Enterprise financialization and production efficiency. World Econ 43: 70–96. |
| [15] | Hu Y, Wang X, Zhang J (2017) Motivation for Financial Asset Allocation: "Reservoir" or "Replacement"—Evidence from Chinese listed companies. Econ Res 1: 181–195. |
| [16] |
Hu Z, Xia X, Yu M (2013) Financial Development, Liquidity, and Commercial Credit: An Empirical Study Based on the Global Financial Crisis. Nankai Mana Rev 16: 4–15. https://doi.org/10.3969/j.issn.1008-3448.2013.03.002 doi: 10.3969/j.issn.1008-3448.2013.03.002
|
| [17] | Ju X, Lu D, Yu Y (2013) Financing Constraints, Working Capital Management, and Enterprise Innovation Sustainability. Econ Res 1. |
| [18] |
Kliman A, Williams SD (2015) Why 'Financialisation' Hasn't Depressed U.S. Productive Investment. Camb J Econ 39: 67–92. https://doi.org/10.1093/cje/beu033 doi: 10.1093/cje/beu033
|
| [19] |
Krippner GR (2005) The Financialization of the American Economy. Socio－Econ Rev 3: 173–208. https://doi.org/10.1093/SER/mwi008 doi: 10.1093/SER/mwi008
|
| [20] |
Lind JT, Mehlum H (2010) "With or without U? The Appropriate Test for a U-shaped relationship." Oxford B Econ Stat 72: 109–118. https://doi.org/10.1111/j.1468-0084.2009.00569.x doi: 10.1111/j.1468-0084.2009.00569.x
|
| [21] | Liu G, Zhang J, Liu Y (2018) Financial asset allocation, macroeconomic environment and enterprise leverage ratio. World Econ 1: 148–173. |
| [22] | Liu S, Liu J, Yang Y (2022) Enterprise financialization and production efficiency: "catalyst" or "stumbling block"? Nankai Manag Rev, 1–22. |
| [23] | Liu S, Liu J, Yang Y, et al. (2019) Corporate Social Responsibility and Corporate Financialization: Financial Tools or Management Tools? Account Res 9: 57–64. |
| [24] |
Lu H, Li F, Lu J, et al. (2021) Enterprise Equity Pledge and Green Transformation: The Regulatory Role of Enterprise Characteristics and Government Behavior. Technol Prog Countermeasures 40: 1–12. https://doi.org/10.6049/kjjbydc.2021120196 doi: 10.6049/kjjbydc.2021120196
|
| [25] | Okamuro H, Zhang JX (2006) Ownership structure and R & D investment of Japanese start-up fifirms. CEI Working Paper Series No. 2006–1. Kunitachi, Tokyo, Japan: Hitotsubashi University. Available from: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/13514/1/wp20. |
| [26] |
Peng Y, Han X, Li J (2018) Economic policy uncertainty and corporate financialization. China Ind Econ 1: 137–155. https://doi.org/10.19581/j.cnki.ciejournal.20180115.010 doi: 10.19581/j.cnki.ciejournal.20180115.010
|
| [27] |
Qi L, Wang J, Liu Y, et al (2023) Research on the Impact of Heterogeneity in Executive Teams on the Performance of Green Innovation in Enterprises. Res Manag 04: 175–184. https://doi.org/10.19571/j.cnki.1000-2995.2023.04.019 doi: 10.19571/j.cnki.1000-2995.2023.04.019
|
| [28] |
Ran R, Dong D, Hu X, et al. (2023) Inhibition or Promotion: Corporate Social Responsibility and Green Innovation Performance. Res Mana 06: 95–106. https://doi.org/10.19571/j.cnki.1000-2995.2023.06.010 doi: 10.19571/j.cnki.1000-2995.2023.06.010
|
| [29] |
Rennings K (2000) Redefifining innovation-eco-innovation research and the contribution from ecological economics. Ecol Econ 32: 319–332. https://doi.org/10.1016/s0921-8009(99)00112-3 doi: 10.1016/s0921-8009(99)00112-3
|
| [30] |
Seo HJ, Kim HS, Kim YC (2012) Financialization and the Slowdown in Korean Firms, R & D Investment. Asian Econ Pap 11: 35–49. https://doi.org/10.1162/asep_a_00160 doi: 10.1162/asep_a_00160
|
| [31] |
Shi X, Yang Z (2021) Enterprise financialization and enterprise innovation: a reexamination from the perspective of industrial policy. Res Manag 42: 147–157. https://doi.org/10.19571/j.cnki.1000-2995.2021.04.016 doi: 10.19571/j.cnki.1000-2995.2021.04.016
|
| [32] |
Tan X, Chen Y (2022) Statistical Testing of the Impact of Enterprise Financialization on Financial Risk. Stat Decis Making 38: 158–163. https://doi.org/10.13546/j.cnki.tjyjc.2022.19.032 doi: 10.13546/j.cnki.tjyjc.2022.19.032
|
| [33] | Tori D, Onaran Ö (2017) The effects of financialisation and financial development on investment: Evidence from firm–level data in Europe. Working Pap. https://doi.org/10.13140/RG.2.2.27043.86565 |
| [34] | Wang H, Cao Y, Yang Q, et al. (2017) Does the financialization of physical enterprises promote or suppress enterprise innovation. Nankai Manag Rev 20: 155–166. |
| [35] |
Wan L, Cha Y, Rao J (2020) Financialization of real enterprises and innovation output of enterprises - a moderated mesomeric effect. Account Res 11: 98–111. https://doi.org/10.3969/j.issn.1003-2886.2020.11.008 doi: 10.3969/j.issn.1003-2886.2020.11.008
|
| [36] |
Wang Y, Li X (2023) Promoting or Suppressing: The Impact of Government R & D Subsidies on the Green Innovation Performance of Enterprises. China Ind Econ 2: 131–149. https://doi.org/10.19581/j.cnki.ciejournal.2023.02.008 doi: 10.19581/j.cnki.ciejournal.2023.02.008
|
| [37] |
Wang Yu, Qiu Y, Suo S (2021) Research on the Nonlinear Heterogeneity of Financial ization on Enterprise Innovation Investment. Res Manag 42: 116–124. https://doi.org/10.19571/j.cnki.1000-2995.2021.12.014 doi: 10.19571/j.cnki.1000-2995.2021.12.014
|
| [38] | Wu G, You D (2011) Can margin trading and securities lending promote green innovation in enterprises? China Soft Sci 4: 172–182. |
| [39] |
Xie W (2018) "Moving from Void to Reality" and Building an Innovative Country: Implementing the Spirit of the 19th National Congress Report. World Econ 8: 3–25. https://doi.org/10.19985/j.cnki.cassjwe.2018.08.002 doi: 10.19985/j.cnki.cassjwe.2018.08.002
|
| [40] | Xu G, Wu W (2018) Will Economic Policy Uncertainty Inhibit Financial Investment in Real Enterprises. Contemp Financ Econ 9: 114–123. |
| [41] | Xu S, Liu D (2019) Empirical study on the impact of corporate financialization on technological innovation. Res Manag 40: 240–249. |
| [42] |
Yang Y, Cheng X (2021) Research on the Impact of Environmental Regulation Tools on Green Innovation of Enterprises. China Soft Sci S1: 247–252. https://doi.org/10.3969/j.issn.1002-9753.2021.z1.029 doi: 10.3969/j.issn.1002-9753.2021.z1.029
|
| [43] | Yang S, Niu D, Liu T, et al. (2019) The financialization of physical enterprises, analyst attention, and internal innovation drivers. Manag Sci 2: 3–18. |
| [44] | Yang Z, Liu F, Li M (2017) Interest rate marketization, inefficient investment, and capital allocation: a natural experiment based on the cancellation of loan interest rates by the People's Bank of China. Financ Res 5: 81–96. |
| [45] |
Zhang B, Zhao S (2022) Research on the Impact of Government Subsidies on Green Innovation in Enterprises–The Regulatory Role of Political Linkage and Environmental Regulation. Sci Res Manag 43: 154. https://doi.org/10.19571/j.cnki.1000-2995.2022.11.016 doi: 10.19571/j.cnki.1000-2995.2022.11.016
|
| [46] | Zhang J (2013) Competition Commitment Obedience: Motivation for Charitable Donations by Chinese Enterprises. Managing the World 9: 118–129. |
| [47] | Zou W, Wang X (2011) The impact of expected and unexpected monetary policies on the stock market. Int Financ Res 11. |
Jun Duan, Tingting Liu, Xiaoran Yang, Hua Yang, Yunwei Gao. Financial asset allocation and green innovation[J]. Green Finance, 2023, 5(4): 512-537. doi: 10.3934/GF.2023020
DownLoad: