Financing Constraints And Investment Business Innovation Research

Economic globalization intensified, innovation capability is particularly important in order to be invincible in such a competitive business environment. Innovation capability is the heart of the enterprise. Businesses can continue to grow and develop only under the conditions of fresh blood. Emphasis on innovation is the foundations of the Chinese dream realized. The 18th Party Congress made it clear that China will implement the innovation-driven development strategy. China’s economic growth mode changes gradually by the "push factor" to "innovation-driven". Enterprises should attach importance to innovation and R & D. But most companies are more or less facing the problem of financing constraints. Some companies because of funding problems led to the slow development or even collapse. The main reason is lack of own funds and the high cost of external financing. It has become a research focus to promote enterprise development. Also it is focused on promoting the country’s economic development, social progress. Our business is the subject of innovation and R & D investment. To promote the innovation process of enterprise is to promote the innovation process at the national level. As the saying goes, companies strong, the country strong. Promote enterprise innovation is particularly important.In this paper, using 2010-2012 data listed companies, analyze the relationship between financing constraints and corporate investment in innovation under the perspective of asymmetric information. Asymmetric information will lead to financing constraints.Financing constraints affect innovation investment. The results show that when companies face financing constraints, companies prefer internal financing; internal financing is the main source of financing for business investment; the higher financing constraints, the lower the company’s investment in innovation; the higher the information asymmetry, the lower financing constraints; there is a correlation between asymmetric information and the company’s investment in innovation; the lower the level of information asymmetry, the higher the company’s investment in innovation and put forward some advice to help companies hope to make the right decisions.