A Study On The Factors Of Impacting R&D Activities Of Private Listed Companies Of China

With the rapid development of the economy after national open and reform policy, private listed company is becoming an integral part of the national economy. Currently the whole national economy generally overall level of R&D investment is low, especially private enterprises constrained by financial and other adverse factors, the size of its R&D investment and the intensity are generally low. China's "Twelfth Five-Year Plan" states clearly in the next five years, our goal being to "adhering to the scientific and technological progress and innovation as a way to speed up the transformation of economic development as an important support." In the current economic situation, companies must maintain a continuous ability to innovate and improve the level of technical innovation to survive, so expanding the R&D investment is an important way. Considering the foreign R&D investment research and domestic listed company's overall R&D investment conclusions maybe not necessarily apply to our listed private companies, so that for private companies to their own circumstances, in particular, it is necessary to research China's private listed companies in R&D investment based on corporate financial resources.In theory, the study of private investment in R&D companies can promote the development of related theories. According to the view of the principal-agent theory, shareholders, managers and creditors because of existing agency costs, and with income uncertainty and investment risk characteristics, tend to be shortly sighted, self-interested and creditor risk aversion is likely to R&D investment adversely. Therefore, researching R&D investment and agency theory are closely related. R&D investment and corporate governance structure are also closely related to characteristics such as company shares, as some scholars believe that, the companies' organizational structure in the ownership concentration and nature of board characteristics, executives of the nature and characteristics have an impact in R&D investment decision-making, which means that R&D investment factors affects the process and results, through the study of factors ffecting R&D investment can promote the development of the theory of corporate governance.Also studying R&D investment affected factors has important practical value. Firstly, from a macro perspective, studying the private enterprises' R&D investment can make suggestions for the government's policies and help the macro policies to stimulate enterprises to expand R&D investment, and it will help speed up the national innovation system, improve the national corporate self-R&D capabilities. Secondly, some factors can be analyzed with private enterprise R&D investment significantly related, which can provide theoretical support for business decisions, also companies can achieve through their own innovation capability on the basis of the theory, and improve their core competitiveness. Especially for our long-standing reliance on cheap labor and the export earnings of the private enterprise anti-dumping policy by the West hit. In this thesis, the export by private enterprises for the future development and decision-making focus on providing some new methods, then increases foreign exchange earnings for the guarantee. Finally, through the thesis, listed private enterprises can be verified whether there are relationships between the R&D investment and corporate capital structure, corporate size, etc., from a financial management point of view of rational decision-making, can contribute to private companies to seize the current opportunity and enhance their innovation capacity, priority for the new market areas.This thesis uses normative and empirical researching methods. Existed literatures are mostly on macro perspective or on cooperating governance and other aspects of R&D investment, but such studies ignore the financial characteristics of the R&D investment effects, such as, not considering private companies' R&D investment and capital structure, relationship differences between the private listed companies and the size of the relevant circumstances. In this thesis, the financial resources perspective of R&D investment of the factors affecting the listed private company R&D investment related theories are reviewed theory firstly, this definition of R&D investment and other related concepts and analyzes the principal-agent and technological innovation theory, according to some logical orders of domestic and foreign R&D investment research that are summarized and analyzed. On this basis, from the theoretical and the assumptions analysis, study the density from R&D investment in two start points, the use of private companies data from 2007-2010 reveals the experience of financial factors on corporate R&D investment intensity and scale of impact.Through the study, we can see that the R&D investment of China's private listed companies generally get lower level, that is, financial factors and the R&D investment intensity and scale are related to the companies' capital structure, firm size, liquidity and profitability levels, which will affect the R&D investment level different industries and regions listed private investment in R&D density and strength, and there are significant differences. Based on the findings, this thesis also proposes for the current reality in China, private enterprises should make a scientific analysis of corporation financial resources and financial policies on how to apply the relevant R&D investment to improve the level of investment recommendations.