Uncertainty, Financing Constraints And Enterprise R & D Investment

Technological progress is the core driving force of economic growth, while companies’ Research and Development (R & D) is an important part of technological progress and innovation and one of the key drivers of modern economic development. Successful R & D is necessary to improve the core competitiveness of enterprises. At present, China corporate R & D investment levels is significantly lower compared to foreign companies. Studies have shown that R & D investment is affected by financing constraints and corporate earnings uncertainty. But academics at home and abroad have few researches on R & D investment under financing constraints and uncertainty. It can be seen that it is very important to research the factors that constraint R & D investment, and it can promote enterprise R & D investment.Based on the summary about the effect of financing constraints on enterprise R&D investment and the effect of uncertainty on enterprise R&D investment, by adopting the combination of theoretical research and empirical research methods, the first theoretical analysis on the factors of enterprise R&D investment mechanism, and based on the theory of investment, financing constraints theory and the effect of uncertainty theory on R&D investment, we put forward theoretical assumptions in this paper. Secondly, based on companies-data from 2006-2014 in our country manufacturing industry and the acceleration model, we establish reasonable financing constraints and uncertainty proxy variables, using Stata software to verify the two aspects of uncertainty and financing constraint on the effect of enterprise R&D investment in China.Therefore, this article defines the uncertainty as to the stability of operating earnings, namely the economic cycle, financing environment, their own governance characteristics and their own characteristics all have effect on enterprise management. According to the results of the empirical model validation:First, the phenomenon of financing constraints exists in our manufacturing enterprises widespreadly, which restricts the development of enterprise investment and technological progress.Therefore, it is recommended that the formulation and implementation is advantageous to the enterprise financing environment. Establishing a relatively perfect financing system at the same time, which can reduce the enterprise’s financing difficulties, so as to make the enterprise increase the intensity of R&D investment, then promote enterprise’s technological innovation and progress. Second, financing constraints has an effect on enterprise R&D investment, and the exogenous financing cost effect and convenience vary from the enterprise scale and enterprise internal governance structure, when enterprise scale reaches a certain degree, the financing constraints to enterprise’s R&D is relatively weak. It shows that the enterprise scale may be an important factor of restricting enterprise’s R&D investment, from the other side, small and medium-sized enterprise’s R&D investment may be possible not initiative. So it suggests that we should pay great attention to the big enterprises’ enthusiasm of study, but also cannot ignore the important influence of corporate governance. Third, the management environment of enterprise will be affected by the economic cycle, and so on enterprise’s R&D investment. Enterprise management environment is good in booming economy, which reduces the uncertainty of its future earnings, so the enterprise can increase R&D investment, thus enterprise can develop its own R&D investment according to the macroeconomic environment to increase its market competitiveness. Finally, financing constraints and uncertainty effect on enterprise’s R&D investment at the same time, and there is interaction effect between them under certain conditions, therefore, we should pay attention to the effect of the interaction between uncertainty and financing constraint on R&D investment. It suggests that government should adopt different policy requirements to different scale enterprises, different industries enterprise and the other aspects of the differences in enterprises.