1 Introduction
2 Literature review
2.1 The research on persistent innovation
2.2 The relationship between financialization and investment behavior
2.3 The relationship between excessive financialization and innovation
3 Theoretical mechanism and hypotheses
4 Data, variables and model specification
4.1 Data sources and processing
4.2 Dependent variable
4.3 Independent variable
4.3.1 Model for judging the excessive and moderate financialization
4.3.2 Comparative descriptive statistics for the evaluation results
Excessive financialization (1393) | Moderate financialization (971) | |||||||
---|---|---|---|---|---|---|---|---|
Variable | Mean | S.D | Min | Max | Mean | S.D | Min | Max |
fin | 0.323 | 0.136 | 0.026 | 0.845 | 0.133 | 0.054 | 0.011 | 0.370 |
size | 21.438 | 0.819 | 19.209 | 24.530 | 21.822 | 0.844 | 19.009 | 25.511 |
age | 13.315 | 5.231 | 3.000 | 35.000 | 13.954 | 4.944 | 4.000 | 37.000 |
tbq | 2.574 | 1.629 | 0.871 | 15.098 | 2.479 | 1.495 | 0.953 | 11.570 |
roa | 0.346 | 0.077 | -0.959 | 0.964 | 0.051 | 0.066 | -0.462 | 0.313 |
cash | 0.108 | 0.051 | 0.002 | 0.300 | 0.271 | 0.145 | 0.017 | 0.845 |
lev | 0.382 | 0.185 | 0.027 | 2.800 | 0.274 | 0.159 | 0.008 | 0.846 |
cap | 0.255 | 0.119 | 0.004 | 0.619 | 0.183 | 0.097 | 0.004 | 0.556 |
4.3.3 Robustness test of the measurement results
4.4 Control variables
Variable | Symbol | Definition |
---|---|---|
Persistent innovation | pin_rd pin_patent | Relationship between current R&D and previous R&D Relationship between current patent and previous patent |
Financialization | fin deviation_fin | Ratio of financial assets to total assets Deviation of actual financialization from optimal level |
Enterprise size | size | Natural logarithm of total assets |
Enterprise age | age | Number of years from registration |
Return on assets | roa | Proportion of net profit to total assets |
Liability ratio | lev | Rate of total liabilities to total assets |
Cash flow | cfo | Share of cash flow from operating activities to total assets |
Growth ability | grow | Growth rate of main business income |
Capital intensity | cap | Ratio of fixed assets to total assets |
R&D intensity | rds | Proportion of R&D input to business income |
Share concentration | share | Shareholding ratio of the top ten shareholders |
Variable | Obs | Mean | S.D | Min | Max |
---|---|---|---|---|---|
pin_rd | 2758 | 18.756 | 1.150 | 14.050 | 23.962 |
pin_patent | 2758 | 3.883 | 1.404 | 0.652 | 9.467 |
fin | 2758 | 0.227 | 0.140 | 0.011 | 0.845 |
deviation_fin | 2364 | 0.073 | 0.063 | 0.000 | 0.557 |
size | 2758 | 21.002 | 1.168 | 16.077 | 25.916 |
age | 2758 | 13.716 | 5.294 | 3.000 | 51.000 |
roa | 2758 | 0.042 | 0.071 | − 0.9596 | 0.964 |
lev | 2758 | 0.336 | 0.182 | 0.008 | 2.800 |
cfo | 2758 | 0.042 | 0.064 | − 0.355 | 0.488 |
grow | 2758 | 0.220 | 1.240 | − 0.982 | 55.044 |
cap | 2758 | 0.222 | 0.119 | 0.004 | 0.674 |
rds | 2758 | 5.440 | 5.230 | 0.023 | 76.350 |
share | 2758 | 59.749 | 13.407 | 9.164 | 101.16 |
4.5 Model specification
5 Results
5.1 Descriptive statistics
5.2 Discussion of the relationship between financialization and persistent innovation
Model | (1) | (2) | (3) | (4) |
---|---|---|---|---|
Dependent variable | pin_rd | pin_patent | pin_rd | pin_patent |
fin | – 0.329** (0.133) | – 0.193 (0.175) | ||
deviation_fin | – 0.008* (0.206) | – 0.067* (0.277) | ||
size | 0.110*** (0.021) | 0.013 (0.028) | 0.111*** (0.021) | 0.013 (0.028) |
age | 0.152*** (0.008) | 0.055*** (0.011) | 0.153*** (0.000) | 0.055*** (0.011) |
roa | 0.582*** (0.194) | 0.856*** (0.255) | 0.579*** (0.194) | 0.857*** (0.255) |
lev | 0.816*** (0.135) | 0.462** (0.178) | 0.855*** (0.135) | 0.486*** (0.177) |
cfo | 0.357* (0.211) | 0.006 (0.278) | 0.230 (0.210) | 0.016 (0.276) |
grow | 0.092*** (0.008) | 0.017* (0.010) | 0.093*** (0.008) | 0.017* (0.010) |
cap | – 0.859*** (– 0.199) | – 0.237 (0.261) | – 0.792*** (0.194) | – 0.265 (0.255) |
rds | 0.035*** (0.004) | 0.033*** (0.005) | 0.035*** (0.004) | 0.033*** (0.005) |
share | 0.006** (0.002) | 0.005* (0.003) | 0.005** (0.002) | 0.005* (0.003) |
Time Effect | Yes | Yes | Yes | Yes |
Constant | 13.60*** (0.485) | 2.752*** (0.638) | 13.481*** (0.483) | 2.675*** (0.635) |
R2 | 0.402 | 0.504 | 0.459 | 0.652 |
Obs | 2758 | 2758 | 2364 | 2364 |
Model | (5) | (6) | (7) | (8) |
---|---|---|---|---|
Sample | Excessive financialization | Moderate financialization | ||
Dependent variable | pin_rd | pin_patent | pin_rd | pin_patent |
fin | – 0.381*** (0.237) | – 0.252** (0.325) | 0.506** (0.439) | 1.237** (0.588) |
size | 0.092** (0.038) | 0.034** (0.052) | 0.112*** (0.031) | 0.009** (0.039) |
age | 0.141*** (0.016) | 0.050** (0.021) | 0.160*** (0.012) | 0.049*** (0.015) |
roa | 0.550 (0.336) | 0.117 (0.460) | 0.281* (0.257) | 1.015*** (0.359) |
lev | 1.355*** (0.265) | 0.443*** (0.359) | 0.213*** (0.188) | 0.870*** (0.252) |
cfo | – 0.989** (0.395) | – 0.194 (0.564) | 0.560** (0.256) | – 0.372 (0.390) |
grow | 0.055*** (0.052) | 0.063*** (0.016) | 0.153*** (0.024) | 0.034** (0.032) |
cap | – 0.977** (0.390) | – 0.368* (0.506) | – 0.651** (0.261) | – 0.176* (0.365) |
rds | 0.023*** (0.006) | 0.008 (0.009) | 0.046*** (0.006) | 0.048*** (0.007) |
share | 0.009* (0.005) | 0.001 (0.006) | 0.004 (0.003) | 0.007 (0.004) |
Time Effect | Yes | Yes | Yes | Yes |
Constant | 13.848*** (0.880) | 2.616** (1.201) | 14.134*** (0.672) | 2.142** (0.900) |
R2 | 0.534 | 0.572 | 0.658 | 0.697 |
Obs | 1393 | 1393 | 971 | 971 |
5.3 Endogeneity test
Sample | Excessive financialization | Moderate financialization | ||||
---|---|---|---|---|---|---|
Stage | First | Second | Second | First | Second | Second |
Model | fin | pin_rd | pin_patent | fin | pin_rd | pin_patent |
fin | – 0.401*** (0.130) | – 0.286** (0.211) | 0.654** (0.465) | 1.045* (0.127) | ||
income | 0.024** (0.063) | 0.052** (0.038) | ||||
Control Variable | Yes | Yes | Yes | Yes | ||
Time Effect | Yes | Yes | Yes | Yes | ||
Constant | 10.405*** (0.560) | 2.544** (1.603) | 11.970*** (0.675) | 2.561** (0.899) | ||
F statistic | 48.15*** | 53.37*** | ||||
Wald test | 327.67*** | 138.32*** | 98.64*** | 78.60*** | ||
R2 | 0.678 | 0.552 | 0.578 | 0.713 | 0.664 | 0.697 |
Obs | 1393 | 1393 | 1393 | 971 | 971 | 971 |
5.4 Discussion of the Nature of the NFCs
Nature | State-owned enterprises | Non-state-owned enterprises | ||||||
---|---|---|---|---|---|---|---|---|
Sample | Excessive financialization | Moderate financialization | Excessive financialization | Moderate financialization | ||||
Model | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) |
Dependent Variable | pin_rd | pin_patent | pin_rd | pin_patent | pin_rd | pin_patent | pin_rd | pin_patent |
fin | – 1.280*** (0.834) | – 0.572*** (0.769) | 0.424*** (0.980) | 0.248* (0.772) | – 0.334* (0.252) | – 0.313 (0.333) | 0.038* (0.413) | 0.221* (0.551) |
Control Variable | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Time Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Constant | 15.683*** (2.067) | 2.243*** (2.080) | 14.712*** (2.439) | 3.035** (0.647) | 13.560*** (0.047) | 2.58* (1.347) | 13.677*** (0.747) | 1.503** (0.948) |
R2 | 0.506 | 0.438 | 0.466 | 0.441 | 0.440 | 0.473 | 0.400 | 0.418 |
Obs | 170 | 170 | 145 | 145 | 1195 | 1195 | 1248 | 1248 |
5.5 Robustness test
Sample | All samples | Excessive financialization | Moderate financialization | |||
---|---|---|---|---|---|---|
Model | (17) | (18) | (19) | (20) | (21) | (22) |
Dependent variable | pin_rd | pin_patent | pin_rd | pin_patent | pin_rd | pin_patent |
fin | – 0.104* (0.251) | – 0.075 (0.239) | – 0.362*** (0.290) | – 0.209** (0.382) | 0.428** (0.396) | 0.857* (0.532) |
Control Variable | Yes | Yes | Yes | Yes | Yes | Yes |
Time Effect | Yes | Yes | Yes | Yes | Yes | Yes |
Constant | 12.901*** (0.361) | 2.357*** (0.619) | 13.004*** (0.076) | 2.852* (0.605) | 13.288*** (0.503) | 2.900** (0.482) |
R2 | 0.432 | 0.513 | 0.503 | 0.544 | 0.580 | 0.515 |
Obs | 2758 | 2758 | 971 | 971 | 1393 | 1393 |