Cash Holdings And R & D Investment Are Smooth

Since the fifth Plenary Session of the 18th CPC Central Committeejnnovati-on and development into the new concept of development.Innovation has become the comprehensive construction of a well-off society "booster",Research and deve-lopment is the source of enterprise innovation,Through independent research and development to improve the national innovation capacity has become the core st-ep to realize the sustainable development of China’s economy. The R&D invest-ment of enterprises is the fundamental guarantee to enhance the competitiveness of enterprises.Therefore it is particularly important to adopt the way of ensuring the continuity of the R&D investment. The R&D investment of enterprises cann-ot do without sustained and effective financial supportion,But the internal cash f-low easily suffers of related factors, so enterprises will consider for the preventi-on of cash holdings.Especially when the enterprises in the face of the economic environment fluctuation,affecting competitors extrusion and the consumer preferen-ces, the company’s cash holdings to ensure R&D smoothing is very important. The paper is based on the typical case of enterprise R&D spending events and the nature of property rights perspective, combining with relevant theory, and thr-ough the case analysis method, selecting fromfour case companies from 2010 to 2014 year, studying the relation between the sustainability of R&D smoothin and cash holdings.And through cross case comparison between state-owned ente-rprises’and private enterprises’related indicators, analysis of the different nature of property right of cash holding smooth R&D investment effect. The research results show that cash holdings influence of corporate R&D investment continu-ed, and showed a positive correlateion. At the same time, under the different nature of property rights, relatively than the state-owned enterprises, private ent-erprises cash holdings has more significant effects on the sustainability of R&D.