Combination of industry and finance, innovation input and innovation output-An empirical research based on Chinese listed companies

Abstract

Under the premise of China's gradual transformation from rapid development to high-quality development, the industry-finance combination formed by financial institutions holding entity companies’ shares is of great significance to promoting the technological innovation of entity companies and industrial technology upgrading. By manually collecting the data of financial institutions holding entity companies’ shares, this paper selected China's A-shares non-financial listed companies from 2013 to 2020 to conduct an empirical test on how the combination of industry and finance affects the technological innovation of entity companies. The test results found that financial institutions holding entity companies’ shares significantly promoted the technological innovation output of entity companies, and the innovation input had an intimidating effect on both. Financial institutions holding entity companies’ shares could advance the innovation output of companies by promoting the companies’ innovation input. And the results also verified the moderating effect of executive compensation. Moreover, it integrated China's special political system to examine the influence of property rights nature on both and verified the heterogeneous influence of executive background. This paper provides a premise for the sustainable development of China's industry and enriches the research content of the combination of industry and finance.