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RETRACTED ARTICLE: Algorithm research on the influence of financing structure and cash holding on enterprise innovation based on system GMM model function theory

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This article was retracted on 18 March 2024

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Abstract

Aiming at the impact of financing structure and cash holdings on enterprise innovation, this article uses the system GMM model. The empirical findings show that the higher the proportion of equity financing, the more cash companies hold, and the more R&D expenses companies put on. Mediation effect model and GMM method are used here. The total effect of financing structure on enterprise innovation c = 0.028, the direct effect of financing structure on enterprise innovation c’ = 0.025, and the indirect effect of financing structure on enterprise innovation a × b = 0.121 × 0.020, these effects are statistically significant. Cash holdings is an intermediary channel between financing structure and enterprise innovation. In addition, using quantile grouping and interaction items of financial marketization degree, this paper finds that, when financial marketization degree is low, the effect of equity financing in external financing through cash holding channels to promote the growth of R&D expenses is more significant than when financial marketization degree is high. With the help of the placebo test, it is of great significance to develop the stock market and raise the degree of financial marketization for promoting enterprise innovation.

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The data used to support the findings of this study are included within the article.

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Acknowledgements

This study was funded by the 2022 key research topic of Anhui Financial Society: “Research on the impact of financial literacy on the financial vulnerability of urban and rural households”. Anhui Quality Engineering Project Teaching Demonstration Course “mathematical modeling” (2020SJJXSFK0018), the major project of National Social Science Fund “Statistical Study on the Impact of Digital Economy on Carbon Emission” (22BTJ048) phased research results.

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Authors and Affiliations

  1. School of Finance, Anhui University of Finance and Economics, 233030, Bengbu, China

    Cheng-Ben Wang

  2. International Exchange Center, Anhui University of Finance and Economics, 233030, Bengbu, China

    Jie-Ru Rong

  3. Quantitative Economics Research Center, Anhui University of Finance and Economics, 233030, Bengbu, China

    Jia-Ming Zhu

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  1. Cheng-Ben Wang
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Contributions

Cheng-Ben Wang: Methodology; Conceptualization; Supervision and Leadership; Visualization; Software; Validation; Writing Manuscript; Jie-Ru Rong: data collation; visualization; verification; investigation; software; method design; validation; data analysis; Jia-Ming Zhu: Verification; Supervision; Writing Review and Editing. All authors read and approved the final manuscript.

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Correspondence to Jia-Ming Zhu.

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This article has been retracted. Please see the retraction notice for more detail:https://doi.org/10.1007/s10878-024-01127-9

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Wang, CB., Rong, JR. & Zhu, JM. RETRACTED ARTICLE: Algorithm research on the influence of financing structure and cash holding on enterprise innovation based on system GMM model function theory. J Comb Optim 45, 61 (2023). https://doi.org/10.1007/s10878-023-00991-1

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