IDEAS home Printed from https://ideas.repec.org/a/oap/ijaefa/v15y2023i2p134-146id862.html
   My bibliography  Save this article

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

Author

Listed:
  • Shiqing Zhang
  • Wenqi Li
  • Brian Sheng-Xian Teo
  • Jaizah Othman

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.

Suggested Citation

  • Shiqing Zhang & Wenqi Li & Brian Sheng-Xian Teo & Jaizah Othman, 2023. "An empirical study of China’s financial institutions holding non-financial listed companies’ shares on company innovation - a moderated mediating effect," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 15(2), pages 134-146.
    • Handle: RePEc:oap:ijaefa:v:15:y:2023:i:2:p:134-146:id:862
    as

    Download full text from publisher

    File URL: http://onlineacademicpress.com/index.php/IJAEFA/article/view/862/724
    Download Restriction: no
    File URL: http://onlineacademicpress.com/index.php/IJAEFA/article/view/862/850
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oap:ijaefa:v:15:y:2023:i:2:p:134-146:id:862. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Heather Rothman (email available below). General contact details of provider: http://onlineacademicpress.com/index.php/IJAEFA/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.