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The impact mechanism of enterprise financialization on firm innovation

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  • Duan, Chenghang
  • Chen, Xinxu

Abstract

Financial market development provided enterprises with more financing options, which affected their innovation activities. This study is based on 1,274 manufacturing companies. We found a significant inverted U-shaped relationship between enterprise financialization and ambidextrous innovation, and financing constraints can negatively regulate this relationship. The inverted U-shaped impact was more significant in enterprises with large-scale financial backgrounds and low innovation willingness. This study provides targeted guidance for improving corporate innovation.

Suggested Citation

  • Duan, Chenghang & Chen, Xinxu, 2024. "The impact mechanism of enterprise financialization on firm innovation," Finance Research Letters, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:finlet:v:68:y:2024:i:c:s154461232400998x
    DOI: 10.1016/j.frl.2024.105968
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