Font Size: a A A

The Influence Of Debt Financing On R&D Investment

Posted on:2016-12-28Degree:MasterType:Thesis
Country:ChinaCandidate:J N HeFull Text:PDF
GTID:2309330473461888Subject:Business Administration
Abstract/Summary:PDF Full Text Request
In a new normal period of economic development, the strategy of innovation-driven development has become not only a major national strategy, but also the future support of strategic development. To promote the ability of independent innovation is the key of implementing innovation-driven strategy. As a major component of technological innovation, firms must increase the level of R&D to enhance the ability of independent innovation. Due to requirement a massive and sustained influx of funding over a long time period of R&D investment, financial constraints have become an important factor affecting on firms’R&D investment. Debt financing, as a source of corporate funds, has some impact on R&D investment.High-tech industry has characteristics of high R&D investment, high innovation ability and high growth rate. We selected the firms in high-tech industry as the research object, investigate the influence of debt financing on high-tech firms’R&D investment using the panel data during 2008 to 2013. Firstly, based on the theory of debt financing, we learn the literature about correlation between debt financing and R&D investment through theoretical and practical levels. Subsequently, we establish three models to empirically investigate the influence of debt financing on high-tech firms’R&D investment with GMM Estimation based on the level of debt financing, debt maturity and debt source.The study shows that debt financing is significantly positively related with firms’R&D investment and promote high-tech firms’R&D investment. The influence of long-term debt financing is greater than the short-term debt financing. And relational debt financing and transactional debt financing also play a positive role in promoting for R&D investment. Compared with relational debt financing, transactional debt financing has a more important role in increasing R&D investment.We propose to increase support for high-tech firms in the long-term debt financing and develop corporate debt market, which can promote R&D investment in the high-tech industry.
Keywords/Search Tags:debt financing, R&D investment, debt maturity, debt source, high-tech industry
PDF Full Text Request
Related items