Research On The Influence Of Financing Constraints And Internal Control On Enterprise R&D Efficiency

Accompanied with the continuous deepened cognitive about innovation,the investment in research and development(R&D)on Chinese enterprises,which proceeded by both state and enterprises has been increasing annually.Nonetheless,the R&D efficiency of Chinese listed companies remains at a low level due to the existence of agent dissension as shareholders and agents,majority shareholders and minority shareholders,respectively.In order to improve the resources utilization efficiency of R&D and enhance the conversion income from R&D output,an efficacious method must be found.Followed by the strengthening consciousness of enterprises' risk management,internal control has focused by several parties.The "Corporate Internal Control Supporting Guidelines",which issued by the Ministry of Finance and other five ministries and commissions in 2010,marked a comprehensive application of internal control in Chinese listed companies.As one of the popular means of enterprise risk control,internal control is a management system that restricts and regulates organizational and individual behavior.Whether it can alleviate the agent conflicts and promote the efficiency of R&D is one of the crucial contents of this study.In the meantime,the financing constrains affect the objective R&D investment and subjective R&D decision making,and the level of R&D efficiency is inextricably linked.Coupled with financing constrains is considered to be able to play a role in corporate governance,the interrelationship between internal control,financing constrains and corporate R&D efficiency is worth exploring.To solve the questions above,this study chose the listed companies of Shanghai and Shenzhen A-share non-financial listed companies from 2012-2015,measured the R&D efficiency,the degree of financing constrains and internal control quality respectively,with the method of DEA,interest coverage ratio and internal control index.Then,we constructed multiple linear regression model to verify the efficiency of financing constrains and the efficiency of R&D scale,discussed the relationship between technical efficiency and comprehensive efficiency of R&D.Afterwards,we placed the financing constrain,internal control and comprehensive efficiency of R&D in a same frame,studied the influence of internal control on financing constrain and comprehensive efficiency of R&D,the influence of financing constrain on internal control and comprehensive efficiency of R&D.Finally,due to the existence of differences in the financing environment between the state-owned listed companies and non-state-owned listed companies,the sample was divided into two groups as state-owned enterprises and non-state-owned enterprises respectively,further studied the influence of financing constrain on internal control and comprehensive efficiency of R&D.The empirical results show:(1)although high degree of financial constrain restrains the scale efficiency of R&D activities,it enhances the efficiency of R&D of pure technical efficiency simultaneously,and ultimately present promote utility.(2)high-quality internal control not only enhances the R&D scale efficiency,but also enhances the pure technical efficiency of R&D,and finally embodies the promote utility of comprehensive efficiency of R&D.(3)with the improvement of the quality of internal control,the degree of financial constrain faced by enterprises will gradually be reduced.During this process,the promotion effect of financial constrain is replaced by internal control.(4)The effect of financial constraints on the relationship between internal control and the composite efficiency of R&D is not significant in state-owned listed companies.However,it has an opposite result in non-state-owned listed companies.This study has subdivided the efficiency of R&D and discussed the influence that come from financing constraints and internal control,enriched the research results in the relevant domain.At the same time,in the relationship between internal control and enterprise investment efficiency,this study took financing constrain into consideration,deepened the existing research.Finally,this study enriched the researches on economic consequences of internal control,provided new evidence for the effectiveness of internal control,and found a possible path for enterprises to improve their R&D efficiency.