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The influence of financial asset allocation on the innovation and investment of high-tech enterprises

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  • Liu, Shuangshuang

Abstract

This study's results suggest that financial asset allocation leads to increased innovation investment by high-tech enterprises. The allocation of different types of financial assets produces opposite impact results. Short-term financial assets inhibit innovation investment by high-tech enterprises, while the allocation of long-term financial assets promotes innovation investment. This finding remains robust after endogeneity and robustness tests. Further analyzing the channels through which it works shows that financial asset allocation promotes enterprises’ innovation investment by increasing their risk tolerance. Furthermore, a subregional sample regression finds that the above promotion is particularly pronounced in the eastern region.

Suggested Citation

  • Liu, Shuangshuang, 2024. "The influence of financial asset allocation on the innovation and investment of high-tech enterprises," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001685
    DOI: 10.1016/j.frl.2024.105138
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    References listed on IDEAS

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    3. Li Ji & Shigui Tao & Miaoyi Li & Clifford James Gere & Yung-ho Chiu, 2025. "Evaluation of innovation quality in China’s high-tech industries—technological development, innovation achievement transformation, and persistent innovation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-18, December.
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    5. I. V. Mitrofanova & O. A. Chernova & M. V. Pleshakova, 2025. "Impact of Investments in Fixed Capital on Innovative Development of Regions of the Southern Federal District," Regional Research of Russia, Springer, vol. 15(4), pages 696-705, December.
    6. Li, Huxing & Zhou, Cheng & Ling, Yixin & Du, Shilin & Tian, Grace Li, 2025. "Board independence and corporate governance: Mediating role of financial asset allocation," Finance Research Letters, Elsevier, vol. 72(C).
    7. Hai, Benlu & Shi, Hongyan & Piao, Tianyu & Dou, Zhaoheng, 2024. "Digitalization of tax administration and its impact on corporate ESG performance," Finance Research Letters, Elsevier, vol. 68(C).

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