How Bank Regulatory Penalties Affect Corporate Innovation
Innovation is a long-term high-risk investment and the key to encouraging corporate innovation is to build a suitable capital chain and financial environment.China's financial system is typically bank-dominated,and bank credit is the most important way for firms to obtain external financing.However,banks are very sensitive to corporate innovation risks,making it difficult for bank credit supply to match corporate innovation needs.Therefore,guiding bank loans to better serve corporate innovation is particularly important.Recently,China's bank regulatory penalties have been strengthened,which has become an important means to regulate bank credit behavior and guide credit funds flow,but whether it can effectively guide bank credit to better serve corporate innovation remains to be investigated.This paper uses the information on administrative penalties against banks published by the National Financial Regulatory Administration of China from 2011 to 2020 to construct prefecture-level city panel data on bank regulatory penalties and employs the revision of the Administrative Penalty Measures of the China Banking Regulatory Commission in 2015 as a quasi-natural experiment to perform empirical analysis.It is found that bank regulatory penalties can significantly promote local firms'innovation,and this effect is more significant for small-scale firms,firms without bank-firm relationships,and high-tech firms.It is also found that increasing firms'available credit resources,optimizing credit structure,and promoting them to"shift from virtual to real"are three important mechanisms.Further,penalties related to bank credit behavior,joint penalties of individuals and institutions,and light penalties have a better effect;although bank regulatory penalties can improve the quality of corporate innovation,they inhibit corporate breakthrough innovation.This paper confirms the effectiveness of China's bank regulatory penalties and which punishment methods are more effective,which provides important policy implications for improving the quality and effectiveness of financial services to the real economy.Firstly,the regulatory authorities should continue to optimize the regulatory framework,strengthen the penalties for banks'illegal lending,weak post-loan supervision and other illegal operations,and provide more credit support for corporate innovation.Secondly,while we punish violations of institutions,the relevant responsible persons should be specifically tracked down to strengthen the deterrent effect of regulatory penalties.When determining the severity of penalties,we should consider the compliance costs to avoid excessive penalties affecting the normal operation of banks.Thirdly,the government can cooperate with the banking industry to study the encouragement policies specifically for breakthrough innovation,such as financial subsidies,to further mobilize the impetus of corporate breakthrough innovation.
bank regulatory penaltiescorporate innovationcredit funds flowpunishment method
万方数据
维普
