RESEARCH ON THE CORRELATION IMPACT OF ENTERPRISE FINANCIALIZATION ON INNOVATION QUALITY-TAKING NEWLY LISTED ENTERPRISES AS AN EXAMPLE

Abstract

Financialization is the process by which financial markets, financial institutions, and financial executives exert a greater influence on economic policy and economic outcomes. Financialization modifies the functioning of both macroeconomic and microeconomic systems. Increasing access to financial services can stimulate economic

development by facilitating businesses' access to credit, savings, and investment opportunities and creating additional jobs. The Chinese government has taken several measures to promote enterprise financialization and financial inclusion in the nation. The Chinese government has adopted an "inclusive finance" strategy to encourage enterprise financialization to make financial services more affordable and accessible to all citizens. This includes reducing costs, such as lowering transaction fees and interest rates and expanding access to financial services via online banking, mobile banking, and other digital technologies. This study investigates the relationship between enterprise innovation performance, financial inclusion, absorptive capacity, and innovation quality in a sample of Chinese firms. According to the results, enterprise innovation performance, financial inclusion, and absorptive capacity significantly positively influence innovation quality.

Additionally, absorptive capacity moderates the association between enterprise innovation performance and financial inclusion in innovation quality. The findings indicate that firms should increase their absorption capacity to enhance innovation quality. To improve innovation quality, businesses should prioritize improving enterprise innovation performance and financial inclusion. The findings of this study provide researchers and practitioners in the field of innovation management with valuable insights.