Research On The Influence Of Company Size And Capital Structure On R&D Investment Based On Companies On GEM

Since we followed the policy of reform and opening,Chinese government has alwaysfocused on the development of science and technology.And surely,these are the importantsource of economic progress.And the level of technology innovation largely depends oninvestment in research and development.Reasonable investment in R&D can promoteeconomic progress,optimize the industrial structure and also contribute to economictransformation.In recent years,research and development activities are getting more and more supportfrom government and relevant laws and policy are now sound.More and more enterprisesare occupied in research and development activities and innovation activities graduallybecome the new force of new technology.However,we have got to notice that comparedwith developed countries,we have long way to go.This paper,based on manufacturingenterprises on growth enterprise market,studies the influence of enterprise size and capitalstructure on R&D investment.As an emerging capital market,this market includes manyhi-tech companies.Thus,research on companies on growth enterprise market is important asto study of influencing factor on innovation among small and middle-sized enterprises.Meanwhile,this paper mainly employs normative and empirical research.We concludethat in the sample data,there is a positive relation between enterprise size and investment inresearch and development.That is to say,larger companies invest more in R&D project.Tosome extent,Schumpeter’s hypothesis is proved.And capital structure has great influenceon R&D activities.Equity financing is one of the most important ways of R&Dfinancing.Also it is obvious that growth enterprise market eases predicament offinancing,expands financing channels,as well as increases investment in R&D activities.Therefore,based on our conclusion and the feature of companies on growth enterprisemarket,it is high recommended that enterprises should be larger to keep economies of scaleand sharpen the competitive edge and advantage.In the end,this paper suggests somerational proposals that fits growth enterprise market,including enterprise cooperation,broadening financing channels and so on.