Is there a moderate range of impact of financialization on corporate R&D?

Abstract

How to promote corporate research and development is a particularly important issue under the background of the economy being diverted out of the real economy. By selecting samples of 1221 Chinese A-share non-financial listed companies from 2010 to 2019, this paper examines the impact of financialization on research and development through the panel threshold regression model. Then, the moderate range of the impact of financialization on corporate research and development is measured, as well as their heterogeneity is also analyzed. The research shows the following results: first, there is a dynamic relationship and moderate range between financialization and corporate research and development. Financialization has a positive effect on corporate research and development when the level of financialization exceeds 0.4748. Secondly, from further heterogeneous research, financialization has a threshold effect on research and development among enterprises with a high level of research and development. In addition, there is a promoting effect on corporate research and development only when their financialization level exceeds 0.0097 in enterprises with a high level of research and development. Therefore, in order to promote corporate research and development, financialization of non-financial enterprises should make adjustment and regulation according to the action and direction of moderate range.

Financial asset allocations, economic policy uncertainty, and enterprise digital transformation

“…As for practical implications, on the one hand, enterprises should recognize the “double‐edged sword” effect of financial asset allocations, and allocate an appropriate size of financial assets based on the “reservoir” motivation (Li & Wang, 2021). Particularly, for non‐state‐owned enterprises and high‐tech enterprises, it is essential to pay close attention to the inhibitory effect of excessive financial investment on the digitization process.…”

“…According to the existing documents, enterprises rely mainly on the "reservoir" motivation and "investment substitution" motivation for allocating financial assets (Li & Wang, 2021). In the former, it is argued that financial assets play a role in optimizing the balance sheet structure and creating a "reservoir" to address uncertainty, alleviate financing constraints, and mitigate financial risks.…”

“…One is the accumulation of endogenous capital obtained from production and operations. The other is the external financing from the capital market (Li & Wang, 2021). Due to the prevalence of information asymmetry between capital supply and demand parties in the financial market, enterprises are often faced with high external financing costs (Brown et al, 2012).…”

Electrochemical biosensors for rapid diagnosis of bacterial infections: Design, targets and applications in clinical setting

“…Moreover, viable but non‐culturable (VBNC) bacteria is a well‐defined phenomenon indicating a dormancy state of a bacterium, resulting in a loss of identification using conventional culture‐based approaches [19]. Several human pathogenic bacteria, including Vibrio cholera [20], Yersinia pestis [21], and Helicobacter pylori [22], may undergo a VBNC state leading to challenges in diagnosis, consequently resulting in treatment delay and increase in bacterial load. Despite limited reports on VBNC bacteria detection, electrochemical biosensor‐based techniques can be an alternative approach.…”

Discretionary Effort on Green Technology Innovation: How Chinese Enterprises Act when Facing Financing Constraints

“…One view mainly focuses on "more money, more innovation" [8]. They suggest that financing constraints will inhibit firm's effort on technology innovation [9][10][11]. Ayyagari, Demirgu ¨c ¸-Kunt [12,13] also conclude that there is a negative correlation between financing constraints and technology innovation, and financing constraints may lead firms to give up R&D projects [14].…”