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International Journal of Business Management and Economics and Trade, 2022, 3(4); doi: 10.38007/IJBMET.2022.030403.

The Impact of Financing Structure on Enterprise Innovation — An Empirical Study Based on China's A-share listed Companies


Ruiqian Sun

Corresponding Author:
Ruiqian Sun

Department of Economics, Shanghai University, Shanghai, China


Based on the financial data of A-share listed companies from 2016 to 2020, this paper empirically tests the impact of financing structure on enterprise innovation. The results show that different from the existing research: (1) internal financing has a positive effect on enterprise innovation, that is, it will promote enterprise innovation; (2) External financing has a negative effect on enterprise innovation, that is, it will inhibit enterprise innovation; (3) The inhibitory effect of external financing on enterprise innovation mainly comes from equity financing. In addition, there are some differences in the impact of financing structure on the innovation investment of state-owned enterprises, information technology enterprises and other enterprises. Based on the above theoretical and empirical analysis, this paper provides some suggestions for enterprises to promote enterprise innovation and carry out reasonable financing strategies.


Financing Structure, Enterprise Innovation, Heterogeneous Enterprise

Cite This Paper

Ruiqian Sun. The Impact of Financing Structure on Enterprise Innovation — An Empirical Study Based on China's A-share listed Companies. International Journal of Business Management and Economics and Trade (2022), Vol. 3, Issue 4: 18-28. https://doi.org/10.38007/IJBMET.2022.030403.


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