Relationship Lending Influence On R&D Investment Of SME

In recent years,manufacturing enterprises of our country are facing much threat both at home and abroad,such as the "re-industrialization" of developed countries and low-end industries transferring to Southeast Asia.While the slowdown in domestic economic has also brought a certain test.Under these circumstances,continuous innovation and upgrading can help the manufacturing enterprises form the core competitiveness achieve sustained and stable development.R&D investment is one of the decisive factors of enterprise innovation.While R&D investment's assets are specific and it has the characteristics of risk and uncertainty,it is easy to be financed in the lending market,especially for small and medium enterprises.Relationship lending is based on close relationship between banks and enterprises,it can help banks accumulate soft information of enterprises.The study shows that relationship lending can effectively solve the information asymmetry problem in the credit market,while there is not much research in how relationship lending influence R&D investment.This paper is based on information asymmetry theory,financial intermediary theory,signal transmission theory and so on,then summarizes the role of relationship lending in R&D investment.The paper argues that relationship lending can alleviate corporate financing constraints by reducing the asymmetry of information,and it can help play the supervisory function of the bank,signal transmission and budget soft constraints.Relationship lending can improve the confidentiality of R&D information,effectively transmit the credibility of enterprises,increase external financing and improve the efficiency of R&D investment.In this paper,the FHP model is used to verify the mitigation effect of relationship lending on financing constraints faced by R&D investment.It shows that relationship lending can improve the credit availability of R&D investment among small and medium-sized enterprises and reduce their dependence on internal cash flow.In addition,this paper uses three dimension variables to research the influence of relationship lending on R&D investment,which are length,number and depth of the relationship.The paper suggests that China should speed up the establishment of community banks,vigorously develop relationship lending business and improve the relevant system,So that the role of relationship lending can be fully exploited.