Study On Financing Path And Smoothing Mechanism Of Private Innovation Investment

In recent years,the traditional momentum of China's economic growth is insufficient,and it is an urgent need to change the mode of economic growth from investment-driven to innovation-driven.How to carry out financial innovation,ease financial constraints and expand innovation investment,is crucial to innovation-driven strategy.This paper uses the GMM method of dynamic panel system to analyze the financing path and smoothing mechanism of innovation investment of heterogeneous enterprises,and explores the influence of monetary policy regulation on the sustainability of innovation investment,so as to identify the impact mechanism of financial institutions,financial markets and financial regulation on innovation investment,and provide useful suggestions for the construction of financial system and macro policies adapted to innovation-driven strategy.Chapter 3 analyses the relationship between financing activities and innovation investment based on information friction,and constructs a unified analysis framework for the following analysis.Firstly,Based on dynamic programming method,this paper analyzes the impact of financial constraints on innovation investment and financial policy under uncertain environment.The results show that the equilibrium scale of innovation investment of non-constrained enterprises depends on marginal q and marginal adjustment cost,while for constrained enterprises on marginal q,marginal adjustment cost and marginal equity financing cost,sotheir equilibrium scale is lower than that of non-constrained enterprises.Secondly,combined with risk factors and information friction types,this paper analyses the boundary conditions of debt financing and equity financing,and finds that risk level,collateral value and marginal equity financing cost are the key factors determining the financing choice of innovation investment.On this basis,the impact of enterprise life cycle on financingchannels for innovation investment is analyzed.Finally,based onloss minimization goal,analyzes the principle of capital allocation among different investment projects under the negative shocks,and finds that enterprises will give priority to the innovation investment projects with higher adjustment cost through smooth mechanism,so innovation investment will show higher sustainability.Chapter 4 analyses the financing channels for innovation investment of heterogeneous enterprises from a static perspective,and explores the impact of financial constraints,credit discrimination and working capital management on innovation investment,so as to form a basic judgment on the financing path of innovation investment.The results show that the main source of financing for innovation investment is internal cash flow and external financing is relatively insufficient;debt financing is the source of funds for innovation investment of state-owned enterprises and large enterprises,indicating that credit discrimination will affect the choice of financing channels for innovation investment;although private enterprises and small and medium-sized enterprises cannot use loan,but canreplaceloan by working capital.Therefore,the financing path of enterprise innovation investment is “internal cash flow-debt financing-working capital”.Internal cash flow should be used first,followed by bank debt financing.When debt financing and internal capital are insufficient,enterprises can use working capital to meet the needs of innovation investment.Chapter 5 discusses the impact of internal capital fluctuation on innovation investment sustainability from a dynamic perspective,and analyses the effect of smoothing mechanism,so as to clarify the selection principles of smoothing mechanism.The results show that the innovation investment of enterprises shows obvious stickiness,and the increase of innovation investment in positive impact is much larger than that in negative shocks,which indicates that the fluctuation of enterprise investment is less than that of internal capital;For smooth mechanism,bank short-term borrowing is more adaptable than cash management,trade credit managementcan be usedby enterprises with strong market position,and Cashmanagement is the choice when external capital is unavailable and the last line of defense for enterprises.The lack of external financing will affect the sustainability of innovation investment,but enterprises will use cash management to mitigate the impact of insufficient external smoothing mechanism on the sustainability of innovation investment.Therefore,when choosing smoothing mechanism,enterprises should follow the order of external capital(short-term loans and trade credit)before internal capital(cash holdings).Maintaining sufficient internal and external capital is very important to maintain the sustainability of innovation investment.Chapter 6 and Chapter 7 study the impact of enterprise life cycle and monetary policy shocks on financing decision-making of innovation investment,which is an extension of Chapter 4 and Chapter 5.The results show that equity financing is the main financing channel for growing enterprises,but short-term loans can be used as supplementary funds;growing enterprises have not entered the market for a long timebut have formed a certain accumulation of knowledge and R&D experience,and formed a certain understanding of the future direction of innovation,so they are willing to use the existing accumulation to gain more competitive advantages,and their stickiness characteristics are more obvious;Tightening monetary policy will significantly affect the stickiness of innovation investment of private enterprises,because tightening monetary policy causes ineffective short-term loan smoothing mechanism,which can only rely on cash management,and the sustainability of innovation investment cannot be maintained when cash savings are consumed.The main innovations of this paper are as follows:(1)Most of the existing studies about the financing of innovation investment focus on whether different types of financing channels are the sources of funds for innovation investment,and are short of depth analysis of the selection order of financing channels.Credit discrimination leads to the failure of credit channels for innovation investment of private enterprises and SME enterprises,which indicates that it is not their subjective preference for working capital management,but that it is difficult to obtain credit funds and forced to choose working capital management.Therefore,it can be judged that the order ofbank debt financing in the financing path of innovation investment is better than that of working capital management.(2)Most of the existing studies about smoothing mechanism of innovation investmentfocus on cash management,and are short of the analysis of other liquidity management methods.This paper adds commercial credit management and short-term bank loan to analyze the impact of three smoothing mechanisms on the sustainability of innovation investment.Different from the existing research,this paper does not simply study the smooth function of cash management,but takes cash management as one of the choices of smooth mechanism.It comprehensively analyses the cost and availability of internal and external supplementary funds,which is closer to the environmental setting of relevant financial decision-making of enterprises.(3)The existing research aboutmonetary policy and enterprise innovation investment focuses on the impact of monetary policy regulation on the scale of innovation investment,not on its sustainability.This paper finds that monetary policy regulation will affect the sustainability of innovation investment by influencing the external smoothing mechanism.In summary,financial factors can significantly affect innovation investment,but enterprises actively use their own funds to maintain the sustained growth of innovation investment.To achieve innovation development,the government should build a multi-level capital market,eliminate credit discrimination and maintain macro-policy stability,so as to provide an appropriate financial ecological environment for innovation-driven strategy.