A study of the impact of financialization of enterprises on their innovative capacity

Based on the financial data of A-share non-financial listed enterprises from 2007 to 2019, this paper empirically examines the impact of corporate financialization on the innovation ability of enterprises. It is found that corporate financialization will have an inhibitory effect on the innovation ability of enterprises. Through further research, it can be seen that corporate financialization of non-state-owned enterprises has a more obvious inhibitory effect on the innovation ability of enterprises, and the inhibitory effect of financialization on the innovation ability of low-competitive industries is more obvious than that of high-competitive industries. The study concludes that non-financial enterprises should focus on improving their own innovation ability to achieve long-term development rather than seeking short-term profits by financializing a large amount of their assets through corporate financialization.