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

Qingyu Xu

doi:10.62051/2r1j0793

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

Qingyu Xu

Transactions on Economics, Business and Management Research, (2024), Vol.10, No.1, pp.452-460

Published: October 10, 2024

DOI: 10.62051/2r1j0793

PDF: Download Full Text PDF

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.

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

APA Citation: Qingyu Xu (2024). The Impact of R&D Investment on The Financialization of Enterprises —— Take The Manufacturing Industry as An Example. Transactions on Economics, Business and Management Research, 10(1), 452-460. https://doi.org/10.62051/2r1j0793

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