The Moderate Role of Government Subsidy on the Relationship Between Financial Institutions’ Shareholding and China State-owned Enterprises Innovation Based on Moderating Effect Regression Model

摘要

Using a sample of listed state-owned enterprises in China during the period of 2007-2018 and basing on moderating effect regression model, this paper investigates how government subsidies influence the relationship between financial institutions' shareholding and innovation input, output and efficiency of State-owned enterprises. This paper finds that when financial institutions hold shares in state-owned enterprises, government subsidies significantly enhance the relationship between the combination of industry and finance and the innovation input, output and efficiency of state-owned enterprises. This study provides new ideas for state-owned enterprises to improve their ability of self-innovation, especially for those that have received government subsidies or established equity links with financial institutions.