R&D Investments、Heterogeneous Debt And Debt Governance

Innovation is a source power for an enterprise and even the whole country instrengthening core competitiveness. The enterprise usually improves and developsnew technology and new products by developing R&D investments. When introducethe R&D investment, the different sources of funds will have different governanceeffects. So, facing with the specific practice, which financing ways should theenterprise take to raising R&D funds, and what effects will the ways produce?After reviewing relevant theories and research achievements at home and abroad,this paper starts from the theory of heterogeneous debt, mainly applies hypothesisanalysis study to research the source of funding R&D investments and its debtgovernance from an empirical point of view. Firstly, setting an individual fixed modelby using manufacturing companies listed in china balance panel data from2008to2010, and using cross-section weights of GLS to estimate the model in order to studythe enterprise R&D investments funding source options. Take the relational debt as anobject of study, examining the introduction of R&D investments in financialinstruments of choice; Secondly, research the influence of the R&D investments andrelational debt on the whole company performance, in order to illustrate the efficiencyof R&D investments. During the empirical analysis process, the innovation of thispaper is improving the importance of the company size and enterprise characteraccording to china’s realities, and focusing on both contribution in R&D financing.The result shows that for R&D investments, relational debt is an effectivegovernance mechanism, the more R&D investments are, the higher the ratio ofrelational debt to total debt is, which enhances the contribution of R&D investmentsto company performance and then increases the value of the firm; Company size has anegative effect on the relationship, more evident in small and medium enterprises;Company size on the efficiency of R&D investment is positive, large enterprises moreincrease in firm value; Enterprise character has a negative effect on the relationship,which is more robust to Non-state-owned shareholding enterprise. Finally, the papergives some advices on how to improve innovative capacity of different firms andR&D investment efficiency.