Study On Effects Of Venture Capital And Financing Constraints On Firms' R&D Expenditures

Innovation is an inexhaustible motive force for national prosperity,the development of economy and technology is an irresistible trend.It is of great significance to the harmonious and stable development of China's socialist economy.R&D investment activities are the main force to promote the development of science and technology innovation so that it has gained great attentions.However,the financing constraint is widespread exist in R&D investment because of its high risk and uncertain return and long cycle.With the increasing prosperity of China's financial market,it will bring new vitality to the capital market in China by investing in high risk and high growth enterprise.Risk investment should be able to effectively alleviate the financing constraints of GEM listed company's spending on research and development,it would not only provide new financing channels to R&D investment activities,but also further promote the process of the diversified development of China's financial market.Therefore,the research and development expenditure of enterprises is critical to keep sustainable development of the venture investment and venture capital institutions from the perspective of venture capital and financing constraints.In this paper,from the venture capital and financing constraints aspects,the GEM Listing Corporation are selected as the research sample.The correlation of risk investment,financing constraints and corporate R&D expenditure are analyzed by multiple regression analysis Based on The balanced panel data of 2011-2014 GEM Listed firms.The empirical results are that the GEM Listing Corporation R&D expenditures exist an significant financing constraints;Venture capital investment has a significant positive effect on corporate R&D expenditure,the introduction of venture capital helps to alleviate the financing constraints of GEM Listing Corporation R&D expenditures;at the same time,the shareholding ratio of venture capital has a significant positive impact on R&D expenditure,namely the higher venture capital shareholding is,the more R&D expenditures is.However,with the increase of venture capital ownership,financing constraints of GEM Listing Corporation R&D expenditure did not have the corresponding relief effective;The financing constraints of R&D spending of Venture capital syndication GEM Listing Corporation is less than this none Venture capital syndication company,that means Venture capital syndication investment will further ease the financing constraints of R&D expenditures.Therefore,the promotion of the GEM Listing Corporation R&D investment activities and the alleviation of the financing constraints of R&D expenditures can be done from the aspects of enterprise,risk investment institutions and government.Enterprises need to improve their awareness of own research and development innovation and strive for venture capital to broaden the financing channels;risk investment institutions need to actively provided value-added services of the management to the invested company;the government needs to support the construction and development of the risk investment and other non-banking financial institutions system to perfect risk investment mechanism.