Effect Of R & D Investment And Capital Structure On The Company's Value

Modern economic growth theory, the company’s innovation is the importantsource of the value of the company growth, seeking to maximize the value of thecompany is the ultimate goal of financial management. To maximize the value of thecompany, the company is through the mutual coordination of strategic management,financial management to achieve. Due to the high risk, the investment innovationstrategy of sustained, companies in the implementation of innovation strategy, need totake a loose financial range financial strategy to cooperate with, to guarantee a smooth,continuous innovation strategy. As a breakthrough point, this article focuses on theR&D and the mutual influence of capital structure on the value of the company or thecompany in the implementation of innovation strategy, should have what kind ofcapital structure, to maximize the value of the company.Put forward for the problems, this paper collected all the small andmedium-sized boards of listed companies as samples, after excluding the extremevalue, the missing value and special industries, intercepting the four years from2009to2012,1271observations; Choose one of the most comprehensive andrepresentative book than as an alternative variable, the value of the company withR&D intensity as the substitution variable of innovation strategy, to the end ofasset-liability ratio as substitution variables of capital structure, the choice of controlvariable for the typical return on equity and growth. With the aid of SPSSSTATISTICS software20OLS regression analysis, in order to eliminatemulticollinearity guarantee the accuracy of the results, both dependent andindependent variables and control variables are lagging behind for a year. After all theobservations were made to regression analysis, will be the end of all the observationsaccording to the median of asset-liability ratio low boundaries are divided into highcapital structure and capital structure two child sample group has carried on theregression analysis, respectively. Results show that, (1) the higher the R&D investment in small and medium-sized boards of listedcompanies, the greater the value of the company;(2) the small and medium-sizedboard listed company capital structure is lower, the greater the value of the company;(3) low capital structure of company capital structure is higher than, r&d into effectmore apparent to the value of the company.The results show that the innovation strategy and capital structure of listedcompanies will have interaction effect on the value of the company, the company inthe implementation of innovation strategy, should maintain a low financial strategywith the combination of capital structure, so as to improve the value of the company.In order to guarantee the correctness of the result, in the robustness test, tobin Q valueas the value of the company’s alternative variable regression analysis again, and theresult is consistent with previous results.