Government’s R&D Subsidy Information,Organizational Legitimacy And Financing Ability Of China’s High-tech Firms

High-tech enterprises play a key role in innovation and help to stimulate the development of economy.However,they have been suffering from financial constraint for a long time,due to asymmetric information between enterprises and the market.This financing constraint becomes more severe and complicated in emerging economies like China.The intellectual property rights(IPRs)protection is so weak in China today that the value of intangible assets becomes more volatile and it makes more valuable information like R&D projects hidden inside the enterprises.Thus it not only leads to a more severe information asymmetry,but also a lack of investors’ trust and acception to the value of high-tech enterprises,which makes enterprises more difficult to get funded.Therefore,the key issue is how to show enterprises’ value effectively and make investors trust in this situation.Some studies have shown that government’s support has certification effect,which help enterprises to get market’s acception and financial support,while actually most of high-tech enterprises’ annual reports are also found that most of R&D information is hidden except the government R&D subsidy.This is the question,why high-tech enterprises are willing to disclose the information about government R&D subsidy in the context of China? Does this kind of information also have a certification effect that help enterprises to improve their financing ability? If it does,what’s the mechanism? And what role does the IPRs protection play? All these questions means too much for the survival and development of high-tech enterprises in our country,while few relative research achievements have been done,especially for the theoretical research.This dissertation focuses on how government’s R&D subsidy influences high-tech enterprises’ financing ability from the perspective of IPRs protection,based on organizational legitimacy.This dissertation finds that the government R&D subsidy information does have certification effect,the value of enterprises can be more acceptable to investors,and thus they acquire a high level of organizational legitimacy,when they disclose the information of the Government’s choice.Moreover,IPRs protection has a moderating effect on this process,a weaker IPRs protection leads to an increasing attention and acception of government R&D subsidy for investors.This phenomenon is particularly significant in acquiring long-term credit contract for high-tech enterprises.This dissertation does something new as follows:(1)This dissertation contextualizes the theory of organizational legitimacy into China’s institutional environment,analyzes the Intrinsic motivation why high-tech enterprises disclosing R&D information and research on the mechanism of R&D information and financing ability.(2)This dissertation discovers the essential feature of R&D information and constructs a theoretical framework to analyze the relationship bwteen R&D information and enterprises’ financing ability,based on organizational legitimacy theory.(3)This dissertation introduces IPRs protection into this theoretical framework,integrates institutional context,enterprises’ behavior and government’s support behavior into the research of market-oriented resource allocation and discusses the influence of IPRs Protection on R&D subsidy information of government and financing ability.(4)This dissertation designes a contextual game theory model to test the theoretical construct,based on incomplete information dynamic game theory and new classical economics analysis methods.Some contributions have been done in this dissertation:(1)This dissertation constructs a theoretical framework of the mechanism how government R&D subsidy information influence high-tech enterprise financing with the moderating effect of IPRs protection,based on organizational legitimacy theory and China’s institutional context.The research provides a new way for high-tech enterprises to pursuing funds and provides a reference for the government to evaluate the influence of policies.(2)This dissertation finds that the government R&D subsidy has a certification effect,which help enterprises to acquiring organizational legitimacy and financing ability empirically,based on a data sample of listed high-tech enterprises and some unlisted enterprises.The outcomes emphasize the significance of organizational legitimacy and information disclosure,provide references for investors to optimize their decision and promote an alternative way to offset the social credit system.(3)This dissertation investigate and verify the moderating effect of IPRs protection,which emphasize the significance of IPRs protection,and help government to strengthen the protection.This dissertation combines normative research and empirical research method,firstly constructs a theoretical model on how government R&D subsidy information influences high-tech enterprises’ financing ability by theoretical deduction.Then,the dissertation tests the theoretical model by integrating mathematical analysis and empirical research.The structure of this dissertation is as follows: Chapter 1 introduces the research background,the main concepts,research contents and innovative points,etc.,illustrates the research framework of this dissertation.Chapter 2 systematically reviews the research situation and related research.Chapter 3 constructs a theoretical analysis framework and clarify the relationship between the main concepts,based on organizational legitimacy theory and China’s context.Chapter 4 develops an incomplete information dynamic game model,combining the theory of signaling and organization legitimacy.Chapter 5 sets up and test several hypothesis empirically using an unbalanced panel data,under the theoretical analysis framework.Chapter 6 does subtle robust test,based on the analysis of explanation,endogenousness and proxy variable problems.Chapter 7 is conclusions and prospections.