A Empirical Study On "Innovation Strategy-capital Structure-enterprise Performance" Of Enterprises In The GEM

The GEM market has opened for three years, gathering355listed companies,93.24%of which are the high-tech enterprises with a high R&D spending. Borrowingfrom the SCP (structure-conduct-performance) paradigm in Industrial Economics,this thesis tries to establish "innovation strategy-capital structure-enterpriseperformance" model.329qualified high-tech enterprises are selected from the GEMmarket for empirical researches, trying to demonstrate how R&D spending affectsenterprise performance by means of changing the capital structure.The thesis begins with a brief introduction of the basic information, such asbackground and significance, and sorting out the relevant literatures at home andabroad. Then, on the basis of expounding correlation theories, a theoretical frameworkof the “innovation strategy-capital structure-enterprise performance " is established:Explain the low the debt level in the innovative enterprises with two reasons of assetspecificity and cash flow; Analyze the positive correlation between capital structureand performance from the direct and indirect effects of debt; as the R&D spendingincreases, the positive interaction between R&D strength and asset-liability ratio toperformance will increases. Shortly thereafter, the empirical analysis of sample is didto test the framework: Summarize characteristics of the enterprises by descriptivestatistical analysis; Use factor analysis method to extract the common factors, andgain the comprehensive evaluation for performance; Regress the variables. Finally,summarize the empirical results, and table suggestions.Empirical studies have shown that innovation strength is inversely related to thelevel of assets and liabilities, and that asset-liability ratio is positively correlated withcorporate performance, and that the role of interaction between innovation strengthand asset-liability ratio to corporate performance is not obvious, thus the impact ofinnovation to performance is not significant. Four reasons to explain:(1) The impactof innovation investment to performance lags;(2) The irrational capital structurerestrict the positive effect of R&D investment;(3) The commercialization capacity ofenterprises are not strong;(4) Some of the enterprises are not real innovativeenterprises. The thesis is ended with3advices: improve the innovation system,optimize capital structure, and enhance the commercialization of new products.