earticle

영어

Nowadays, enhancing innovation capability has become a core element for enterprises to keep competitive advantage in competition.However, for enterprises, how to effectively strengthen their innovation capabilities remains an urgent problem to be solved. Meanwhile, with the continuous development of economic globalization, China is paying more and more attention to the role of foreign investment in its economy. The Chinese government has formulated and implemented a series of economic incentive policies aimed at attracting and encouraging foreign investment into the domestic economic market.In the context of China's continuous promotion of opening up to the outside world, the importance of foreign investment in China's capital market is gradually increasing. So, can foreign shareholders leverage their unique advantages to stimulate the vitality of Chinese enterprises in innovation and research and development? This article selects sample data from Chinese A-share listed companies in the Shanghai and Shenzhen stock markets from 2011 to 2021 to explore the impact of foreign shareholding in Chinese enterprises’ innovation. The following conclusions have been drawn in this article: Firstly, foreign shareholding significantly promotes corporate innovation, and this conclusion still holds after a series of robustness tests such as replacing the dependent variable, lagged one period regression, and instrumental variable method. Secondly, heterogeneity analysis found that non-state-owned enterprises performed well in the empirical study of foreign shareholding promoting corporate innovation, while state-owned enterprises did not pass the significance test; The innovation promotion effect of enterprises in the eastern region is more significant under the influence of foreign shareholding, while it is not significant in the central and western regions. Through research, this article confirms the positive effect of foreign shareholding on corporate innovation. The research findings of this article provide theoretical support for Chinese enterprises to promote innovation driven strategies and enhance their own innovation capabilities. Meanwhile, this study provides useful insights for relevant government departments to improve foreign investment policies. Based on this, suggestions are proposed to firmly attract foreign investment, strengthen the independent innovation awareness and technology absorption capacity of local enterprises, and build a healthy market competition environment.