The Impact Of Financing Constraints On R & D Investment Of Small And Medium - Sized Listed Companies Under Financial Crisis

Under the national strategic goal of building an innovation-oriented country, R&D investment of Chinese enterprises is growing rapidly. While facing a huge global financial crisis in late2007, the sources of financing and performance of the listed companies have been significantly fluctuated. We seize the opportunity of the current financial crisis, take listed companies on the SMEs board as the research object, identify the disclosure of R&D data from its annual report, and eventually selected216listed companies on the SMEs board that listed before2009and select2006to2011for the study interval.This article learn from Brown, Fazzzri, Petersen (2009) which is focus on the R&D financing constraints of U.S. public company, build the equity-debt financing model. With216listed companies on the SMEs board’s data, we use GMM regression method, and eventually come to a conclusion that listed companies on the SMEs board face financing constraints on R&D investment.Then, we lead the IPO time and age of listed companies on the SMEs board into our research and establish cross-term equity-debt financing model. The results show that the earlier companies listed on the SMEs board the less financing constraints on the R&D investment from the endogenous financing, equity financing and debt financing, and the older company face less financing constraints from the equity financing.Finally, we take the size of the company for the Standard Classification to divide the216sample of companies listed on the SMEs board into big-scale companies and middle-small-scale companies. We also found the big-scale companies listed on the SMEs board basically not face the financing constraints on R&D investment, while middle-small-scale listed companies on the SMEs board face financing constraints.