An empirical study of China’s financial institutions holding non-financial listed companies’ shares on company innovation - a moderated mediating effect

Shiqing Zhang (), Wenqi Li (), Brian Sheng-Xian Teo () and Jaizah Othman ()

International Journal of Applied Economics, Finance and Accounting, 2023, vol. 15, issue 2, 134-146

Abstract: The economy of China is gradually transforming from high-speed development to high-quality development. The innovation in companies is conducive to companies’ sustainable development, but innovation is often accompanied by risks and instability that needs the support of a large amount of capital. Financial institutions holding non-financial companies’ shares are favourable in alleviating the financial constraints of companies and they are of great significance in promotion of technological innovation and industrial technological upgradation of non-financial companies. The data for this study is selected from China’s a-share non-financial listed companies from 2013 to 2020 as research samples and data is empirically tested to show the effects of the industry-finance combination on non-financial companies and their technological innovation by creating the multiple regression equation. The test results showed that financial institutions holding non-financial companies’ shares significantly promoted the investment in the innovation of technology in non-financial companies. Through stepwise regression and other methods, it is concluded that financing constraints had a mediating effect on financial institutions holding entity companies’shares and company innovation. Financial institutions holding non-financial companies’ shares could promote technological innovation of companies by easing financial constraints, and the monetary policy as they had a moderating effect on this mediation. In addition, this paper conducted the sub-industries’ test on financial institutions holding non-financial companies’ shares and non-financial companies’ technological innovation through cluster analysis. Moreover, it examined the impact of property rights nature according to the basic national conditions of China. This study offers a new method for the innovation of companies in China and it provides a prerequisite for the high-quality economic development and industrial upgrading of China.

Keywords: China’s a-shares non-financial listed companies; Combination of industry and finance; Financing constraints; Innovation of non-financial companies; Monetary policy. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://onlineacademicpress.com/index.php/IJAEFA/article/view/862/724 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oap:ijaefa:v:15:y:2023:i:2:p:134-146:id:862

Access Statistics for this article

More articles in International Journal of Applied Economics, Finance and Accounting from Online Academic Press
Bibliographic data for series maintained by Heather Rothman ().