Research On The Impact Of Financing Constraints On Corporate R & D Investment

The successful Research and Development (R&D) investment strategies promote enterprise to cultivate the core competitiveness of enterprises for sustainable source of competitive advantage. However, in terms of technological innovation of enterprises,there is insufficient R&D in the status quo. There are many factors affecting on R&D investment, and the financing channels of funding are the key factor, but domestic scholars rarely concern about it. Therefore, this paper attempts to research about the underinvestment problem of corporate R&D from the perspective of financing constraints.Based on the analysis of high and new technology enterprise R&D investment and financing status, first of all, combined with asymmetric information theory to analyze the corporate R&D financing constraint problem; Secondly, used cash holdings theory to discuss whether cash holdings can ease the R&D financing constraints; Finally, by using samples of the high and new technology listed companies which had disclosed R&D expenses during the period from 2007-2009 in Shanghai and Shenzhen stock market,on one hand,tested the R&D investment of listed companies whether being in the existence of financing constraints, and how the financing constraints affect on R&D investment, on the other hand, tested the relationship between R&D investment and cash holdings.The results show that:(1) Because of R&D investment special microstructure nature, there is a serious information asymmetry between enterprise and the outside world. China's High and new technology listed companies exist certain financing constraint problems and thus restricting the R&D investment, especially in the State-owned companies and small firms; (2) At present, China's high and new technology listed companies without support of debt financing and have to depend on two main financing sources: internal cash flow and equity financing; (3) The relationship between R&D investment intensity and cash holdings are significantly positive; sufficient cash have a certain buffering effect on R&D financing constraints.