The Impact Of Financing Constraints And Internal Control On R&D Investment Intensity On Enterprises

In the ever-changing wave of globalization,the competition of high-tech enterprises has not only limited to the competition of talent,funds,the hardware and software facilities,but also embodies whether or not high-tech enterprises can integrate these unique resources and form their own core competition force;furthermore,it also depends on whether or not it can be successful in technological innovation thus making the product constantly upgrading so as to retain the footsteps of consumers.The technological innovation the text mentioned here is treated as the center that mainly stay around the high-tech R&D enterprises,high-tech enterprises for R&D investment determines the success of high-tech enterprise innovation which is also the key to the success.In a large number of high-tech enterprises that have gradually formed a tacit understanding of the consensus,that is,for the internal R&D funds into the number of enterprises to measure the size of innovation and innovation strength of the standard,the amount of corporate R&D investment is able to be used as an important indicator to measure the ability of enterprises’ innovation to a certain extent,because the high-tech enterprises R&D have the following characteristics:activities cycle is long,the need for funds is extremely large,the efficiency of return is low,so how much R&D funds is particularly important.In recent years,China has proposed an innovative model of economic growth to encourage enterprises to carry out independent innovation and to increase the team of enterprise innovation funds and policy support,the degree of emphasis on this area is also enhanced.However,it is undeniable that the high-tech companies is still relatively cautious in the R&D capital investment due to the fact that high-tech research and development of capital investment is a very large cost of expenditure whereas the success is an unknown result.So the dilemma faced by enterprises is how to achieve capital return,how to reduce the risk.As a result,the enterprises prudently do capital investment for R&D.Among all the enterprises,high-tech industry is the most active in the field of innovative technology where the main part of the R&D funds shortage problem has been plagued by the development of enterprises and technology research.Furthermore,internal control is an important basic problem in the study of R&D financing constraints in China.The research on this issue would be helpful to understand and analyze the impact of internal structure on R&D financing thus providing the basis for internal policy making and environmental improvement.This paper mainly analyzes the situation of R&D activities and the influencing factors of high and new technology enterprises from the aspects of financing control and internal control.The research focuses of the financing constrain theory is on the use of external funds to influence the development of high-tech enterprises.The internal control theory is the analysis of the organization and management of the high-tech enterprises themselves,the nature of property rights and the quality of internal control.The academic researches on financing constraints are relatively more,and the formation of the mainstream view also shows that financing constraints will have a profound impact on high-tech enterprises R&D activities.The characteristics of enterprise internal control mechanism are seen as a high-tech enterprises to further develop a factor in this aspect of the study which can be drawn to improve the internal control to support the technical progress of this topic thus providing solid evidence,which can enrich the academic community for financing constraints,internal control and the relationship between R&D.Based on this,this article on China’s Shanghai and Shenzhen A shares of 318 listed high-tech enterprises from 2011 to 2015 data as the sample,the construction of three multivariate linear regression model of investment financing constraints affected by the presence of R&D inspection and financing constraints on R&D investment and internal control regulation effect of financing constraints on R&D investment,the results of the study found:(1)The financing constraint index is an indicator to measure he degree of corporate financial constraints,the higher the financing constraint index is,the greater the degree of financing constraints are;moreover,the higher the R&D investment index is,the higher the investment level is.There is a significant negative correlation between the firm’s financing constraint index and firm R&D investment intensity,which suggests that the higher the degree of financial constraints results in the less the R&D investment.(2)The cross-term between internal control and financing constraints is negatively correlated with R&D,which means that high-quality internal control can mitigate the constraint of financing constraints on R&D investment.Further analysis shows that there is no significant correlation between the internal control and financing constraint crossings of state-owned high-tech enterprises and R&D investment,but there is a significant negative correlation between private enterprises in this respect.In this way,it shows that under the other conditions remain unchanged,the improvement of the quality of internal control eases the private high-tech enterprises R&D investment financing constraints influences more significantly comparing to the effect of state-owned enterprises.