The Value Relevance of Operational Innovation: Insights from the Perspective of Firm Life Cycle

Corporate Nature, Financial Technology, and Corporate Innovation in China

Corporate innovation has become the main driving force for the long-term development of enterprises, but the characteristics of high risk, long cycle, and high capital demand of corporate innovation activities expose enterprises to high financial rejection. Financial technology, formed by combining digital technology with traditional financial services, is gradually changing the financial service model and providing new ideas for corporate investment and financing. In this study, using the data of non-financial and non-real estate listed companies in Shanghai and Shenzhen markets, A-shares from 2015 to 2020, we examine the effect of financial technology on corporate innovation through a fixed-effects model and investigate the influence of corporate characteristics on the relationship between financial technology and innovation through a moderating-effects model. The results show that financial technology enhances the ability to serve real enterprises by reshaping financial services, which in turn effectively drives an increase in corporate innovation, and the mechanism is conditionally heterogeneous. In addition, the moderating effect of the firm’s nature is found to be more significant in non-state-owned firms, high-technology firms, and firms in the growth and maturity stages by life cycle. The policy implications of this study are to continuously promote theoretical research, to guide the development of fintech, and to improve the construction of financial technology infrastructure. Additionally, to deepen the integration of financial technology with real enterprises and establish differentiated financial technology support tools, so as to improve the precision of promoting enterprise innovation.

Green Credit Policy and Investment Decisions: Evidence from China

Previous studies have reported mixed results on the effect of the green credit policy on firms’ behaviors. Investment decision making is one of the most important elements of firms’ behaviors, but few studies have discussed the relationship between the green credit policy and firms’ investment decisions. Therefore, this paper explores the effect of green credit policy on firms’ investment decisions. Using Chinese listed firms from 2008 to 2020, we found that the green credit policy tended to reduce pollutant-emitting firms’ investment level but increases pollutant-emitting firms’ investment efficiency; this effect was more pronounced in state-owned firms, firms with high-quality corporate governance, and those with a higher analyst following. This paper contributes to the literature on the economic consequences of the green credit policy and can help commercial banks and other financial institutions allocate green credits more effectively.