Empirical Analysis On The Impact Of Financing Factors To High-tech Listed Companies' R & D Investment In China

Financial Market is considered as the centre of the economic activity, and various researches show the strong connection between financial development and economic growth. In the theory of economic growth, Acknowledge and technology are thought as the core factors which promote economic growth, and the source of technology's improvement is the creative exploration. R&D is very crucial and important for economic growth. Thus, for the relationship between financial factors and R&D investment, scholars have done a great deal of research and achieved some research results.Within the current literature about the relationship between financial factors and R&D investment, the scholars'analysis focused on the developed countries which have matured financial markets. On the contrary, China's financial market is far away from effective market and the decision behavior of its listed companies is policy-oriented seriously. Thus, there may be particularity of the relationship between financial factors and R&D investment in the financial market of China.This paper used the data of the high-tech corporation which were IPO before 2005 and chose there kinds of research variable which included corporation investment, financial factor and corporation feature. It adopted statistical analysis, qempirical analysis and comparative analysis methods to research the financing constraints of China's high-tech listed companies and financing factors'impact on the R&D investment of these high-tech companies.This paper is divided into five chapters:Chapter One is the introduction of the background, the related theoretical, the empirical research subject and methods and the main innovations and shortages; Chapter Two is the review of related research, including the theoretical basis and empirical literatures; Chapter Three is the selection and statistical analysis of empirical variables; Chapter Four is the establishment of empirical model which based on the theoretical model, dynamic panel regression and the explanation of regression results; Chapter Five is the summary of the analysis and the relevant policy recommendations.The paper did some exploration for this question which was base on the results of foreign researches and the main innovations are as follows:first, found the R&D investment decision model which is base on the Euler equation of fixed capital investment, and lead to the R&D investment decision model including the equity factors; second, this paper lead in the external equity as the impact factor of R&D investment which was only cash flow in the domestic research to analyze the effects of the financing factors on high-tech listed companies'R&D investment overall.The research of the financing factors'impacts on the R&D investment of high-tech listed companies in this paper shows the relationship of the financing factors and the R&D investment in the capital market environment of China. And the results also show the differences in each financing factor's effect on R&D investment. This will provide experience supports to optimize the financing environment and improve the financing channel of the enterprises. Empirical findings show that there are financing constraints of China's high-tech listed companies which are more obvious for the small and medium companies. Cash flow and debt finance have significant effects on the R&D investment of China's high-tech listed companies. Compare with these two financing methods, the external equity financing factor's effect is small and insignificant. And the financing factors'effects of the large-size high-tech enterprises are more significant than the small and medium-size ones.