Effects of Heterogeneity of Financialization on Firm Innovation: Evidence in Context of Energy Transition in Lens of Research and Development

Innovation is essential to promote energy transition, reduce CO 2 emissions and break resources environmental constraints. Financialization has become an important part of firm asset portfolio. Different forms financialization have great differences in liquidity, profitability, risk purpose. This paper focus on the effect heterogeneity innovation provide evidence for transition from perspective R&D with annual data non-financial listed firms Shanghai Shenzhen A shares 2009 2018. The Pooled Ordinary Least Square, fixed regression, Heckman two-stage model instrumental variable regression are implied. study also examines impact agency conflict relationship between innovation. results show that: first, there financialization, different motives influences Second, transaction-oriented can significantly improve innovation, while a negative correlation investment-oriented Finally, existence two types not only weakens role promoting but intensifies ‘crowding-out’ financialization. Firms should allocate rationally under effective supervision incentives achieve goals.