Study On Effects Of Financial Development On Financing Constraints Of Firm's R&D

The relationship between financial development and economic growth is always one of the key topics,with the increasing of economic development and the financial development,the R&D innovation will be the motive force source of China's economic growth,the role of financial development in boosting the firm's R&D is key to research the relationship between economic growth and financial development.Enterprise play very important role with economic increasing,but their development is restricted by the R&D level,as we know,the firms' R&D need a large number of money that financial development can provide.So,this paper will study there is what relationship between financial development and firm's R&D,so that can give some useful ideas for financing of a firm's R&D.Based on the theory of technological innovation,the theory of financing constraints,and so on,this paper uses way of theory and empirical to research how the financial development influences a firm's R&D investment.Exploring the mechanism that financial development how to influence the financing constraints of a firm's R&D,and there is what different relationships about that the financial development influence the financing constraints of different ownership type's firm's R&D.Based on Small and Medium enterprises board listed companies data in Shenzhen Stock Exchange from 2013 to 2015,the influences and mechanism of financial development on the financing constraints of a firm's R&D are tested empirically.The reflections of the test are as follows:(1)almost all companies exit impact on financing constraints of the R&D investment;(2)the financial development could reduce effect on financing constraints of a firm's R&D investment faced by small and medium enterprises;(3)private small and medium enterprises have more serious financing constraints of the R&D investment than state-owned;(4)financial development much more remarkably decrease financing constraints of the R&D investment faced small and medium enterprises than state-owned.The ending,this paper gives some policy recommendations according to conclusions of study.