Innovation is the engine of high-quality development. Studying the dynamic relationship between enterprise financialization and innovation from the perspective of moderation screening, can guide enterprises to coordinate financialization behavior and innovation, and promote the high-quality development of real economy. Using a model to measure the moderation of enterprise financialization, this paper finds that, over-financialization inhibits innovation and under-financialization promotes innovation, so that the relationship has been dynamically adjusted with moderation. The dynamic relationship originates from different motives, has different transmission mechanisms, is affected by the financial initiative, and is eventually transmitted to the total factor productivity of enterprises. The results show that under-financialization can help innovation by easing the constraints of cash flow in which factors should be considered, such as the nature of enterprises, development stage and core business development. Meanwhile, optimizing the industry environment can support financialization to play a supporting role, so as to achieve high-quality development.

The possible contributions of this paper are as follows: It finds the reason of the dynamic relationship between the financialization and innovation in non-financial enterprises from the perspective of moderation, and resolves the academic disputes that the relationship is either inhibition or promotion. It reveals the general law of dynamic relationship between the financialization and innovation in non-financial enterprises, and brings new understanding to the relationship in the theory and practice circle. It finds out the route of how financialization helps innovation, and provides theoretical guidance for the realization of high quality development of real economy.

The enlightenment of this paper is that: Enterprises should strive to achieve moderate financialization in order to serve innovation and achieve high-quality development. The government should take multiple measures to encourage under-financialized enterprises to make full use of cash flow and limit the excessive arbitrage behavior of over-financialized enterprises, promote the positive impact of enterprise financialization on innovation, and achieve high-quality development of real economy. Investors should take a rational view of the financialization behavior of enterprises, and make reasonable investment decisions by considering the financial investment and innovation investment level and investment environment.