Empirical Analysis On The Impact Of External Financing Factors To Companies’R&D Investment In China

At present, it has been widely recognized that the level of technological development is a key factor in a country’s comprehensive national power and core competitiveness. As an important part of the economical society in a country, companies’ scientific and technological innovations are the sources to maintain competitiveness and will have a significant impact on nation’s technological development. Although the listed companies in our country have gradually started to realize the importance of technology innovation, there still exist certain gaps in the R&D investment level when compared with western developed countries. So it is necessary to study how to effectively improve the level of enterprises’ R&D investment.There are many factors that can affect R&D investment. Since Modigliani and Miller proposed the classic MM theory, scholars started to pay attention to financing factors. A lot of literature has confirmed the existence of R&D investment financing constraints, which reduces R&D investment. However, in this paper, we found that the impact of total funds on R&D investment is limited. So this paper tries to redefine "financing constraints" from the perspective of information asymmetry and principal-agent.This paper uses SYS-GMM method to carry out empirical research on the sample data. Studies have found that because of the disgust for high-risk investment, long-term liability and relational liability creditors reduce R&D investment through the restraint and supervision of the use of fund."A dominant" phenomenon derived from absolute equity concentration and the "missing" of the controller of state-owned enterprises also have significant negative effects on R&D investment. Institutional investors, on the other hand, help to improve R&D investment due to their advantages in profession, capital and information.