The Impact Of Financing Structure And Government Subsidies On Enterprise's Innovation Investment

Under the double difficulty of internal and external environment,Chinese manufacturing industry are staggering,central government is implementing “the strategy of innovation-driven development and moving economic growth to technical innovation driven,R&D investment is the key factor in technical innovation,to a certain extent it determines the importation of personnel,technology and other elements and the innovation ability of enterprise.From the perspective of actual situation and international comparison,Chinese enterprises' R & D capability is low,which has close relationship with the reality that the enterprise invests to R&D is insufficient.After the financial crisis,our country has increased strengths of innovation investments,and significant growth in statistical indicators of manufacturing industry innovation input and output performance,but it also have obvious gap compared with developed countries,as the financing channel of the providing fund has an important impact on enterprise's R&D investment,the financing problem of the R&D is the primary factor to drag the R & D investment in manufacturing enterprise,while the domestic research on this topic is relatively few.Using the panel data from 2011 to 2015 of Chinese manufacturing listed companies,this paper uses fixed effects model to conduct OLS estimation,first we constructed the measurement model of the influence of financing structure on the R & D investment of manufacturing enterprises,after controlling the variables such as enterprise size and leverage ratio,and comparing the differences of the impact of domestic source financing,debt financing and equity financing on R & D investment of manufacturing enterprises,the empirical study shows there is a significant positive effect between internal source financing and debt financing on the R & D investment of manufacturing enterprises,while the positive effect of internal source financing is significantly higher than that of debt financing,equity financing restricts R & D investment of manufacturing enterprises to a great extent.Then,this paper investigated the influence of financing structure differentiation on R & D investment of manufacturing enterprises from four factors respectively ownership concentration,ownership characteristics,enterprise size and regional difference.Empirical analysis shows that modest ownership concentration can help toimplement R & D investment of manufacturing enterprises.The classification research on the nature of equity concluded that R & D investment of central state-owned enterprises,local governments holdings and private holdings have the positive dependence on debt financing,but the central state-owned enterprises are relatively easier to obtain debt financing to carry out R & D;current equity financing has merely a positive effect on the central state-owned enterprises' R & D investment;private holdings' R & D investment on domestic source financing dependence was significantly higher than the other two types of enterprises,from the perspective of innovation Investment-cash flow sensitivity,financing constraints of local government holdings companies is weaker than the other two types of enterprises,and indicates that the degree of financing constraints is relatively low.The result on the classification of enterprise size shows,the smaller enterprise size,the more significant influence domestic source financing on R & D investment,the more serious enterprise financing constraints of small size;Small and medium enterprises have difficulties on getting debt financing to support the activities of R & D,while larger enterprises can take advantage of previous period debt financing to carry out the activities of R & D,those results explain banks and other financial institutions are more willing to lend money to larger enterprises;larger enterprises do not tend to develop R & D by using equity financing,but SME suppress R & D investment to protect stable profits.The classification research on the locations shows debt financing of eastern enterprises enable to provide essential expenditure on the activities of R & D,but debt financing of western enterprises have a significantly negative effect on R & D investment,those results show that local enterprises do not tend to bank loans to develop the activities of R & D,which may be the causes of lack of industrial agglomeration effect,industry technical level fall behind and low probability of innovation performance;Onlydomestic source financing have a significant effect on the activities of R & D in the western areas,those said that western areas have insufficient innovation changes and regional financing markets fall behind,which restricted the activities of R & D in these areas.Finally,this paper tests incentive and crowding-out effects of R&D subsidy on companies' R&D expenditures with two subsidies of government direct subsidy and tax return,and finds government direct subsidy have insignificant effect on R & D investment of manufacturing enterprises.However,government tax return has a significant promoting effect on R & D investment of manufacturing enterprises.Furtherly,the relationship of government tax return and R & D investment of manufacturing enterprises appears as inverse U shape curve and the existence of peak conditions of government tax returns,in the case of government tax return exceed peak conditions,the continued increase in tax return will lead to a decrease in R & D investment of manufacturing enterprises.