An Study On The Influence Of Preference Of Equity Refinance To Listed Companies' R&D Investment

In the 21st century, science and technology are the main source of a nation's economic growth. Research&Development activities reflect the importance of science and technology, it is becoming increasingly significant in terms of developing enterprises' core competence and stimulating a country 's economic growth. Listed companies are the most important main body of China's research and development. Although the investment on R&D is growing over the time, there is still a big gap compared with developed countries. There are many factors constrain the investment on listed companies in China, one of the significant factors is financing, especially on the situation that Chinese listed companies prefer equity refinancing, which has a greater impact on R&D investment than other factors of financing. Therefore, it is important and pragmati c to study the financing factors of Chinese listed companies ' investment on R&D.To begin with, this thesis makes relevant theoretic analysis, supported by theories of financing and R&D investment and based on the financing environment and the current situation of listed companies' R&D investment, this thesis puts forward two main hypotheses; then, according to study samples of listed companies which published their expenditures on R&D, it structures logistic regression model and multiple linear regression model. This thesis first proves Chinese listed companies indeed prefer equity refinance, then demonstrates the preference of equity refinancing has great effects on R&D investment. On the other hand, it illustrates the preference of equity refinancing in the Chinese capital market is not completely irrational, it is a important financing method and stimulus. Finally, in conclusion, this thesis provides policy advice in the Chinese context according to the development of enterprise and the work of government.