Organizational Financialization and Innovative Investment

Enterprises are increasingly venturing into financial investments beyond their core businesses, based on the non-parametric quantile model expanded by B-splines, to more truly reflect the nonlinear heterogeneous impact of organizational financialization and innovation investment. The findings reveal: (1) The financialization of enterprises has the convergence characteristics of the relationship between macro financial development and innovative investment in different economies. (2) With the improvement of the level of enterprise innovation investment (quintile point), the inflection point (or optimum point) of financialization gradually moves to the right, showing heterogeneous characteristics. (3) High-tech enterprises mainly exhibit the promoting effect of financialization, while non-high-tech enterprises mainly show the crowding-out effect. The financialization of Chinese enterprises should be commensurate with their own innovation level and macro financial development level, so as to provide a decision-making basis for improving the goal of innovation investment.