Research On The Influence Of Capital Structure On Enterprise Technological Innovation

Under the background of constructing innovative country, this paper researches the financing of enterprise’s innovation. Firstly, this paper defines the concepts of capital structure, technology innovation, input and output of R&D. It elaborates MM Theory, Trade-Off Theory, Agent Cost Theory, Pecking Order Theory, Signaling Theory, Control Theory of the Company and Schumpeter’s Innovation Theory, which are related to the research. Secondly, it analyses the current situation of the development of manufacturing industry in Shandong province, including the analysis of the present situation of capital structure and technology innovation. Thirdly, it carries on the theoretical study of the impact of capital structure on enterprise’s technology innovation, respectively from the point of view of MM Theory, Trade-Off Theory, Agent Cost Theory, Pecking Order Theory, Signaling Theory, Control Theory of the Company. Finally, it makes the assumptions. Using the manufacturing data of listed companies in Shandong province, this paper carries on the mixed OLS regression analysis on the impact of capital structure on enterprise’s R&D strength.Conclusions are drawn. Input and output levels of technology innovation are relatively low for the manufacturing listed companies in Shandong province; Internal financing does not play an important role in input of R&D for the manufacturing listed companies in Shandong province; Asset-liability ratio is negatively related to the intensity of enterprises’ research and development, and the solvency of listed companies in Shandong province is weak; State-controlled has positive correlation with enterprises’ strength of research and development. It puts forward the policy recommendations according to the conclusions.There is an innovative points. Using provincial data to carry on the empirical analysis, this paper provides effective references for development of local economy and enterprises’ innovation.