The Impact Of Financing Channels On R&D Input Studying From Manufacturing Listed Companies

Recently, Chinese government has been continuously improving manufacturing powerhouse top-level design, R&D expenditure of whole society increases year by year by the support of capital markets, financial institutions system and government policies. But compared with the manufacturing powerhouse, Chinese enterprise general R&D input intensity is still very low, therefore, under the condition of the limited resources of science and technology, how to optimize the enterprise financing channels to promote enterprise R&D input is particularly important. The purpose of this article is to study the impact of manufacturing listed companies internal and external financing channels on R&D input, and then focus on the threshold factor which can significantly change the impact effect of financing channels on R&D input intensity, to optimize the financing channels, and guide the allocation of resources of science and technology to the high efficiency of the manufacturing industry, for improving the R&D input intensity of whole society.First of all, we use threshold regression to analysis that how internal financing and equity financing, debt financing and government subsidies such exogenous financing intensity impact R&D input, basing on the theory of asymmetric information theory, control theory framework, as well as the feature of R&D investment. Secondly, we try to analyze the threshold effect due to the debt levels, profitability, operation ability and enterprise scale enterprise characteristics, then build the corresponding threshold regression index system and improve threshold regress model. Finally, we chose 692 manufacturing listed companies from A-share market, and use their panel data dating from year 2008 to year 2015 to finish the empirical test, and verify research hypothesis about the impacts of various financing channels on R&D input, and find the threshold effect. After a comparative analysis of results of the GLS multiple linear regression and threshold regression which considering the threshold effect, we found the nonlinear relationship between the financing channel and the R&D investment that only when debt levels below the threshold value can internal financing have positive effects on R&D input, but if higher than the threshold, the enterprise will reduce the intensity of R&D investment. Equity financing is negatively related to the R&D investment, rather than positive correlation, but when the company earnings level is higher than the single threshold, the negative effect will be weakened. We also found that when a company have a very low levels of debt, its debt financing does not affect the R&D input intensity, but once above the threshold, the higher debt levels, the stronger the negative effect will have, and high levels of bank loan proportion also exacerbate the negative effect. When the company is in very poor working conditions, increase government subsidies intensity may lead to reducing the intensity of R&D investment, therefore, only a company with great operating ability can truly transform and use government subsidies. In addition, government subsidies for small businesses promote better than medium-sized enterprises, and if company size higher than the threshold, where the company scale effect makes a high efficiency of government subsidies. Therefore, comprehensive, in order to improve the manufacturing industry R&D input intensity, first of all, we should encourage those company whose endogenous financing is insufficient but the debt at lower levels, to issue bonds or enhance commercial credit, followed by encouraging the company with higher level of profitability to issue stock or increase endowment spread. Moreover, when supplying large companies, the government also can increase the intensity of the subsidies to those small companies with better operating ability.