The Impact of R&D Investment on The Financialization of Enterprises —— Take The Manufacturing Industry as An Example

Qingyu Xu

doi:10.62051/2r1j0793

Authors

Qingyu Xu

DOI:

https://doi.org/10.62051/2r1j0793

Keywords:

R&D investment; financialization of enterprises; cash holding; market power.

Abstract

In recent years, the excessive investment of entity enterprises leads to the phenomenon of enterprise financialization, which makes the development of entity enterprises fall into a vicious circle. How to restrain the excessive financialization trend of enterprises and promote the high-quality development of real enterprises has become an urgent problem to be solved. Based on the financial data of listed companies in A-share manufacturing industry from 2008 to 2022, this paper studies the possible inhibitory effect of enterprise R&D investment on finalized investment from the perspective of asset allocation and market competition. The results show that R&D investment is significantly negatively correlated with the level of enterprise financialization, that is, R&D investment can restrain enterprise financialization to a certain extent. Further research shows that increasing cash holding and increasing market power are two intermediary paths for R&D investment to restrain the financialization of enterprises.

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