Enterprise innovation is not only a short-term R&D investment, but also a persistent process of long-term investment. Based on the fact of the incline of financialization in Chinese enterprises, this paper implies the theory of new structural economics, utilizing a micro-data of A-listed companies in Chinese Exchange Stock Market, to test the impact of financialization on the persistence of innovation, while considering the role of life cycle and industrial difference. The results show that financialization has an inhibitory effect on the persistent innovation performance of non-financial listed companies, i.e. crowding-out effect, which is especially strong in the growth period of enterprises. With the extension of the life cycle stage of enterprises, this inhibitory effect is weakened. The results of further industry-specific research also show that listed companies in different industries are affected by the " crowding-out” effect of financialization at different stages of their life cycle. Generally speaking, this paper expands the research situation of persistent innovation, provides empirical evidence for the application and expansion of new structural economics at the micro level, and has certain reference significance for promoting the path choice of long-term economic development in China.
Financialization, Life Cycle and Persistent Innovation: An Empirical Research Based on the Industrial Difference
Journal of Finance and Economics Vol. 45, Issue 08, pp. 43 - 57 (2019) DOI:10.16538/j.cnki.jfe.2019.08.003
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Cite this article
Xiao Zhongyi, Lin Lin. Financialization, Life Cycle and Persistent Innovation: An Empirical Research Based on the Industrial Difference[J]. Journal of Finance and Economics, 2019, 45(8): 43-57.
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