Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Influence of Financial Derivatives on Innovation Behavior of Listed Companies

Based on the Empirical Research of Listed Manufacturing Companies in China

Authors
Heng Xiao1, *, Yunfei Wu2
1Department of finance, the Guangdong University of Foreign Studies, Guangzhou, Guangdong, China
2Department of statistics, the Zhongnan University of Economic and Law, Wuhan, Hubei, China
Corresponding Author
Heng Xiao
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.061How to use a DOI?
Keywords
financial derivatives; innovation behavior; sino-US trade friction
Abstract

In recent years, with the economy of our country gradually transforming from high speed growth to quality development, due to the upgrading sino-US trade friction, the complicated international political relations, the increasing RMB exchange rate volatility and the impact of rising labor costs, many manufacturing listed companies in our country faces various risks, and their innovation behavior have been affected a lot as well. At the same time, with the emergence of financial derivatives, many listed manufacturing companies began to increase capital allocation of financial derivatives to hedge risks, trying to stabilize corporate cash flow, increase investment in R&D innovation. Therefore, this paper takes China’s A-share listed manufacturing companies from 2018 to 2020 as the research object to conduct an empirical study on the relationship between the use of financial derivatives and enterprise innovation behavior of listed manufacturing companies.The results show that:(1) in the context of sino-US trade friction, the use of financial derivatives still has a positive effect on firms’ innovation behavior; (2) If enterprises use financial derivatives for speculative purposes, it will not promote the innovation of enterprises.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.061How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Heng Xiao
AU  - Yunfei Wu
PY  - 2022
DA  - 2022/03/26
TI  - Influence of Financial Derivatives on Innovation Behavior of Listed Companies
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 383
EP  - 388
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.061
DO  - 10.2991/aebmr.k.220307.061
ID  - Xiao2022
ER  -