Search Advanced

Quantitative Finance and Economics

2021, Volume 5, Issue 3: 496-515. doi: 10.3934/QFE.2021022
Previous Article Next Article
Research article

Threshold effects of financialization on enterprise R & D innovation: a comparison research on heterogeneity

  • 1.
    School of Economics and Statistics, Guangzhou University, Guangzhou, China
  • 2.
    Faculty of Business and Law, University of Portsmouth, Portsmouth, UK
  • Received: 29 April 2021 Accepted: 10 June 2021 Published: 11 June 2021

  • JEL Codes: C23, D00, O32

  • By taking samples of 1221 non-financial listed companies in China from 2010 to 2019, threshold effects of financialization on enterprise R & D innovation, as well as heterogeneous impacts of the threshold effects in different enterprise types are analyzed by using panel threshold model. The research shows that there are threshold effects of financialization on enterprise R & D innovation, and these threshold effects are heterogeneous among different types of enterprises. To be specific, first, in groups with different ownership structures, the inhibiting effect of state-owned enterprises financialization on R & D innovation decreases with the increase of financialization, while the impact of financialization of non-state-owned enterprises on R & D innovation is firstly promoted and then inhibited with the increase of financialization. Second, in groups with different financing constraints, the inhibiting effect of financialization with high financing constraints enterprises on R & D innovation decreases significantly with the increase of financialization, while the effect of financialization with low financing constraints enterprises on R & D innovation changes from an insignificant promoting effect to a significant inhibiting effect with the increase of financialization. These conclusions provide empirical evidence for different types of enterprises on how to balance the relationship between financialization and R & D innovation.

    Citation: Tinghui Li, Xue Li, Khaldoon Albitar. Threshold effects of financialization on enterprise R & D innovation: a comparison research on heterogeneity[J]. Quantitative Finance and Economics, 2021, 5(3): 496-515. doi: 10.3934/QFE.2021022

    Related Papers:

  • By taking samples of 1221 non-financial listed companies in China from 2010 to 2019, threshold effects of financialization on enterprise R & D innovation, as well as heterogeneous impacts of the threshold effects in different enterprise types are analyzed by using panel threshold model. The research shows that there are threshold effects of financialization on enterprise R & D innovation, and these threshold effects are heterogeneous among different types of enterprises. To be specific, first, in groups with different ownership structures, the inhibiting effect of state-owned enterprises financialization on R & D innovation decreases with the increase of financialization, while the impact of financialization of non-state-owned enterprises on R & D innovation is firstly promoted and then inhibited with the increase of financialization. Second, in groups with different financing constraints, the inhibiting effect of financialization with high financing constraints enterprises on R & D innovation decreases significantly with the increase of financialization, while the effect of financialization with low financing constraints enterprises on R & D innovation changes from an insignificant promoting effect to a significant inhibiting effect with the increase of financialization. These conclusions provide empirical evidence for different types of enterprises on how to balance the relationship between financialization and R & D innovation.


    加载中


    [1] Acharya V, Xu Z (2017) Financial dependence and innovation: The case of public versus private firms. J Financ Econ 124: 223-243. doi: 10.1016/j.jfineco.2016.02.010
    [2] Akkemik KA, Ozen S (2014) Macroeconomic and institutional determinants of financialisation of non-financial firms: Case study of Turkey. Socio-Econ Rev 12: 71-98.
    [3] Almeida H, Campello M, Weisbach MS (2004) The cash flow sensitivity of cash. J Financ Econ 59: 1777-1804.
    [4] Anthony A, Catalina B, Minna K (2008) Neglected Innovators: How do Innovative Firms that do not Perform R & D Innovate? Results of an Analysis of the Innobarometer. INNO-Metrics Thematic Paper, 1-38.
    [5] Bonfiglioli A (2008) Financial integration, productivity and capital accumulation. J Int Econ 76: 337-355. doi: 10.1016/j.jinteco.2008.08.001
    [6] Brown JR, Fazzari SM, Petersen BC (2009) Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R & D Boom. J Financ 64: 151-185. doi: 10.1111/j.1540-6261.2008.01431.x
    [7] Brown JR, Petersen BC (2011) Cash holdings and R & D smoothing. J Corp Financ 17: 694-709. doi: 10.1016/j.jcorpfin.2010.01.003
    [8] Cumming D, Johan S (2010) Phasing out an inefficient venture capital tax credit. J Ind Competition Trade 10: 227-252. doi: 10.1007/s10842-010-0080-3
    [9] Demir F (2009) Financial liberalization, private investment and portfolio choice: Financialization of real sectors in emerging markets. J Dev Econ 88: 314-324. doi: 10.1016/j.jdeveco.2008.04.002
    [10] Ding S, Guariglia A, Knight J, et al. (2013) Negative investment in China: financing constraints and restructuring versus growth. Econ Dev Cult Change 37: 1490-1507.
    [11] Duchin R, Gilbert T, Harford J, et al. (2017) Precautionary Savings with Risky Assets: When Cash Is Not Cash. J Financ 72: 793-852. doi: 10.1111/jofi.12490
    [12] Fazzari S, Hubbard RG, Petersen BC (1987) Financing constraints and corporate investment.
    [13] Gehringer A (2013) Growth, productivity and capital accumulation: The effects of financial liberalization in the case of European integration. Int Rev Econ Financ 25: 291-309. doi: 10.1016/j.iref.2012.07.015
    [14] Hall BH (2005) The financing of innovation. Handbook Technol Innovation Manage, 409-430.
    [15] Hall BH (2002) The financing of research and development. Oxf Rev Econ Policy 18: 35-51. doi: 10.1093/oxrep/18.1.35
    [16] Hall BH, Moncada-Paternò-Castello P, Montresor S, et al. (2016) Financing constraints, R & D investments and innovative performances: new empirical evidence at the firm level for Europe. Econ Innov New Technol 25: 183-196. doi: 10.1080/10438599.2015.1076194
    [17] Hansen BE (1999) Threshold effects in non-dynamic panels: Estimation, testing, and inference. J Econometrics 93: 345-368. doi: 10.1016/S0304-4076(99)00025-1
    [18] Hong M, Drakeford B, Zhang K (2020) The impact of mandatory CSR disclosure on green innovation: evidence from China. Green Financ 2: 302-322. doi: 10.3934/GF.2020017
    [19] Howell ST (2017) Financing Innovation: Evidence from R & D Grants. Am Econ Rev 107: 1136-1164.
    [20] Huang Z, Li X, Chen S (2021) Financial Speculation or Capital Investment? Evidence From Relationship Between Corporate Financialization and Green Technology Innovation. Front Environ Sci 8.
    [21] Kliman A, Williams SD (2015) Why 'financialisation' hasn't depressed US productive investment. Cambr J Econ 39: 67-92. doi: 10.1093/cje/beu033
    [22] Krippner GR (2005) The financialization of the American economy. Socio-Econ Rev 3: 173-208. doi: 10.1093/SER/mwi008
    [23] Li D, Zheng M, Cao C, et al. (2017) The impact of legitimacy pressure and corporate profitability on green innovation: Evidence from China top 100. J Clean Prod 141: 41-49. doi: 10.1016/j.jclepro.2016.08.123
    [24] Li T, Li X (2020) Does structural deceleration happen in China? Evidence from the effect of industrial structure on economic growth quality. Natl Account Rev 2: 155-173. doi: 10.3934/NAR.2020009
    [25] Lin B, Chen Z (2018) Does factor market distortion inhibit the green total factor productivity in China? J Clean Prod 197: 25-33.
    [26] Liu Z, Li X, Peng X, et al. (2020) Green or nongreen innovation? Different strategic preferences among subsidized enterprises with different ownership types. J Clean Prod 245: 118786.
    [27] Orhangazi O (2008) Financialisation and capital accumulation in the non-financial corporate sector: A theoretical and empirical investigation on the US economy: 1973-2003. Cambr J Econ 32: 863-886. doi: 10.1093/cje/ben009
    [28] Pelikanova RM (2019) R & D expenditure and innovation in the EU and selected member states. J Entrep Manage Innovation 15: 13-34.
    [29] Porter ME (1992) Capital disadvantage: America's failing capital investment system. Harv Bus Rev 70: 65-82.
    [30] Sen S, Dasgupta Z (2018) Financialisation and corporate investments: the Indian case. Rev Keynes Econ 6: 96-113. doi: 10.4337/roke.2018.01.06
    [31] Seo HJ, Kim HS, Kim YC (2012) Financialization and the Slowdown in Korean Firms' R & D Investment. Asian Econ Pap 11: 35-49.
    [32] Smith KH (2005) Measuring innovation. Oxf Handbook Innovation.
    [33] Su K, Liu H (2021) Financialization of manufacturing companies and corporate innovation: Lessons from an emerging economy. Managerial Decis Econ.
    [34] Sukharev O, Voronchikhina E (2020) Financial and non-financial investments: comparative econometric analysis of the impact on economic dynamics. Quant Financ Econ 4: 382-411. doi: 10.3934/QFE.2020018
    [35] Tong TW, He W, He ZL, et al. (2014) Patent regime shift and firm innovation: Evidence from the second amendment to China's patent law. Acad Manage Proc 2014: 14174.
    [36] Trivedi SR (2014) Financialisation and Accumulation: A Firm-Level Study in the Indian Context, Shaping the Future of Business and Society—Symbiosis Institute of Management Studies, Eds., 348-359.
    [37] Tuzcuoglu T (2020) The impact of financial fragility on firm performance: an analysis of BIST companies. Quant Financ Econ 4: 310-342. doi: 10.3934/QFE.2020015
    [38] Xu M, Albitar K, Li Z (2020) Does corporate financialization affect EVA? Early evidence from China. Green Financ 2: 392-408. doi: 10.3934/GF.2020021
    [39] Zeng T, Lin HC (2011) Ownership structure and R & D spending: evidence from China's listed firms. Chinese Manage Stud 5: 82-93. doi: 10.1108/17506141111118471
    [40] Zheng Y, Chen S, Wang N (2020) Does financial agglomeration enhance regional green economy development? Evidence from China. Green Financ 2: 173-196. doi: 10.3934/GF.2020010
    [41] Zhou KZ, Gao GY, Zhao H (2017) State Ownership and Firm Innovation in China: An Integrated View of Institutional and Efficiency Logics. Adm Sci Q 62: 375-404. doi: 10.1177/0001839216674457
    [42] Zucker LG, Darby MR (2007) Star scientists, innovation and regional and national immigration; 0898-2937. Natl Bur Econ Res.
  • Reader Comments
  • © 2021 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
通讯作者: 陈斌, bchen63@163.com
  • 1. 

    沈阳化工大学材料科学与工程学院 沈阳 110142

  1. 本站搜索
  2. 百度学术搜索
  3. 万方数据库搜索
  4. CNKI搜索
Quantitative Finance and Economics
3.2 0.3

Metrics

Article views(3148) PDF downloads(266) Cited by(38)

Preview PDF
Download XML
Export Citation
Article outline

Figures and Tables

Tables(9)

Other Articles By Authors

Related pages

Tools

/

DownLoad:  Full-Size Img  PowerPoint
Return
Return

Catalog