Research On The Impact Of Capital Structure On R&D Investmen

In recent years,China's economic growth is slowing down,entering an era of "new normal”.The tradition developing mode of enterprises are meeting severe challenges of unable to meet the requirements of economic development.More and more enterprises are aware that only by relying on scientific and technological progress to enhance the core competitiveness that can survive.During this process,corporate' s independent innovation ability plays an important role.Innovation ability comes from the R&D activities,as an important source of innovation.Our country attaches great importance to R&D activities,the gap of R&D investment with developed countries is narrowing.The corporate' s research and development fund from the financial allocation and government' s financial support.And financial support has become the main source recently.It has great significance to improve the corporate ' s financing environment and improve the R&D investment,by studying the relationship between R&D investment and capital structure.This paper studied the impact of corporate capital structure on R&D investment,and the difference of the effect of the different forms of organization.The empirical analysis on the basis of theoretical analysis 1526 public companies of China A shares from 2012 to 2015 and finally obtained that the enterprise's capital structure has negative influence on the R&D investment on asignificant level.Whether state-owned enterprises or private enterprises,the effect is very obvious,indicating that the company's R&D investment is affected by debt financing,resulting in limited R&D investment.This paper divided into four parts.The first part is the introduction,which introduces the background and significance of the research,combing with the relevant research at home and abroad.The second part is the theoretical part,including the concept and characteristics of R&D investment,the theory of capital structure,the theoretical analysis of the relationship between R&D investment and capital structure,and puts forward the relevant assumptions.The third part is the empirical part of this paper,by selecting the relevant variables,set up multiple regression model,collecting data to form a panel data regression analysis,OLS regression analysis and fixed effect and random effect,the empirical results show that capital structure has a negative effect on R&D investment,enterprise asset liability ratio is higher,R&D investment is low,that enterprise R&D investment is affected by debt financing.The fourth part are the conclusions and policy recommendations according to the empirical results.Recommendations are to provide more financing solution for enterprises to improve the financing environment;applying the preferential fiscal and tax policies;improving the enterprise's R&D investment power;strengthening the legal system and protecting corporate ' s innovation.