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

In the era of knowledge-based economy,technological innovation is the main supportthat keeps a country and region with economic sustainable development,industrialupgrading and core competitiveness promotion.The R&D activities is a source oftechnological innovation and it is the most direct factor to promote technologicalprogress.Enterprises in developed countries attach great importance to R&Dinvestment.In order to maintain a leading edge,they usually control and blockade thetechnology.In order to obtain a place in the highly competitive market,China’s enterpriseshave to be based on its ongoing R&D investment to achieve the independentinnovation,then helping companies achieve a technical leap forward and form a marketcore competitiveness.The R&D activities require persistent long-term investment,sufficient funding is anecessary prerequisite to achieve technological advances.As R&D investment is high-risk,enterprise will be subject to the influence of many factors when carrying out R&Dinvestment decisions.A large number of domestic and foreign literature confirmed theimpact of debt financing as one of the important source of enterprises’ funds to companiesR&D investment.Because of the non-mandatory information disclosure of China’scompanies R&D investment,it is difficult in data collection for the micro-level study.Lessempirical research using the listed companies’ data directly into the relationship betweendebt financing and companies R&D,it is a lack of in-depth study of the relationshipcharacteristics for different controlling stake listed companies in China’s capital markets.This paper selected the listed companies in high-tech industry which have higherR&D investment and more representative as the research object,using the disclosedrelevant data of2007—2010high-tech industry listed companies in China Shanghai andShenzhen stock market as the study sample. Based on the three aspects of debt financingstructure, the overall level of debt financing,debt maturity and debt source, This paperempirical test their respective impact to corporate R&D investment,and further analysisunder the different controlling stake, state-controlled listed companies andnon-state-controlled listed companies,their individual characteristics on the impact of debtfinancing to corporate R&D investment decisions. Eventually find the constraints problems of different controlling stake corporates debt financing to its R&D investment,and make the corresponding recommendations.