Research On The Impact Of Debt Financing On R&D Investment Under The Internal Capital Market Environment

Belenzon et al.(2010)pointed out that due to the advantages of the group such as "capital pool",the member enterprises in the group are more innovative than the non-member enterprises.Business groups have the advantages of information symmetry and resource sharing.With the development of large-scale and diversified enterprises in China,the forms of group organizations are increasing day by day.The ICM formed within the group can be regarded as an effective substitute and supplement to the external capital market,to ease financing constraints and to conduct capital allocation.Debt financing has tax shield effect,supervision advantage and bankruptcy effect.In the ICM environment,the impact of debt financing on the intensity,sustainability and efficiency of innovation investment will change,and its internal mechanism will also change.These are the focus of this paper.This paper studies the relationship between debt financing and R&D investment after the introduction of ICM environment and its causes.Through the theory of debt structure and the analysis of the function effect of debt financing,the paper deeply understands the polytropism of debt financing on enterprise investment.Through the analysis of the characteristics of R&D investment,it is proposed that the measurement of innovation investment performance should take multi-dimensional form.Through analyzing the formation and connotation of ICM and reviewing different schools of ICM theories,we can understand the different perspectives of ICM operation mechanism.On this basis,based on the research framework of "two dimensions and one constraint",this paper focuses on the impact of the introduction of ICM environment on the relationship between debt financing and R&D investment:(1)with the help of real option model and numerical simulation results,this paper compares the changes in the impact of debt financing on R&D investment under the condition that ICM is effective or ineffective.Whether ICM is effective or not is the basis and premise of the follow-up research.(2)under the condition of ICM effectiveness,the influence of ICM on the relationship between debt financing and R&D investment of technology enterprises after its introduction is further analyzed from the dynamic perspective of ICM effect characteristics.It is proposed that the "residual control" effect and the "reputation dividend" effect of ICM are the causes of the positive impact of debt financing on R&D investment intensity in ICM environment.(3)under the effectiveness of ICM,the static perspective of ICM's organizational structure is deeply analyzed to analyze the changes in the influence of ICM on the relationship between corporate debt financing and R&D investment after its introduction.It is proposed that the willingness of technology enterprises to use debt financing to maintain the sustainability of R&D investment is reduced in ICM environment.The degree of intention reduction was positively correlated with the organizational structure characteristics and complexity of ICM.(4)under the condition of ICM effectiveness,focus on the relationship between bank debt and innovation investment in ICM environment.By comparing the differences in connotation,characteristics and governance methods between bank debt and non-bank debt,it is found that bank debt gives full play to its "supervision effect" from two aspects of incentive and constraint,and effectively restrains innovation inefficient investment.The innovation of this paper mainly includes:(1)the relationship between debt financing and R&D investment embedded group under the background,analyzes the changes and mechanism of the process of interpretation,under the common effect,external capital market,the particularity of the relation between debt financing and R&D investment,and behind the law of system of particularity,expand the external capital market independence hypot.(2)according to the development of the theory of R&D investment,and the operations of science and technology enterprises,investment in innovation by degree of strength,sustainability and efficiency to describe all three aspects,and using the innovation technology adoption,debt structure,real option theory and method study of internal capital market on the impact of debt financing and innovation investment mechanism,the full effect of debt financing to invest in innovation.(3)based on the law of formation and development of flows in different theories of ICM,an analytical framework of "two dimensions and one constraint" was established to improve the internal logic of the study on the impact of debt financing on innovation investment after the introduction of ICM environment.The research conclusion is helpful to understand the internal reasons for Chinese science and technology enterprises to use debt financing for R&D investment.It is helpful to explore the internal mechanism of the influence of ICM environment on the investment and financing behavior of enterprises.