The influence of financial innovation on enterprise risk management

In recent years, financial innovation has altered the external financial environment and presented new challenges to enterprise risk management. This article constructs a financial innovation index and performs regression estimates across four latitudes using data from listed Chinese companies and provincial levels collected over 10 years. The results show that the greater the level of regional financial innovation, the stronger the effect of enterprise risk management, but enterprise financing constraints limit the effect. A financial innovation index system aligned with the Chinese situation and providing new evidence for financial development is built.