Research On Relationship Of Financing Constraints And Corporate R&D Expenditures Based On The Perspective Of Executive Characteristics

Enterprises are the core of the national innovation system.Only by improving the innovation ability of enterprises can fundamentally improve the country's competitiveness.China's enterprises still have the problem of innovation is not strong.There are many factors that lead to the lack of R&D investment.One of the key factors is that it is difficult for firms to obtain external funds to meet their investment needs.Academics generally agree that financing constraints have an inhibitory effect on R&D spending.Most of the existing research focuses on direct research on the relationship between financing constraints and R&D expenditure.As for the impact of executive characteristics on their relationship between the two is rare.In real life,executive behavior choices are influenced by their characteristics such as age and educational level.In studying the relationship between financing constraints and R&D,study taking into account executive characteristics will be more effective.Hypothesis put forward on the basis of reading literature and theoretical analysis.The proposed assumptions are verified by setting the research model and variables.Final conclusions and policy recommendations drawn.Based on this,this article takes the listed companies of A-share in 2012-2015 as the research object.Distinguishing the property rights,the empirical study examines the impact of financing constraints on R&D expenditure and the regulatory role of executive characteristics.The main contribution of this study is to consider the impact of the human factor in R&D investment strategy selected.Research on relationship of financing constraints and corporate R&D expenditures based on the perspective of executive characteristics,will expand the depth and breadth of R&D expenditure research.The results of this study showed that:(1)A sample of listed companies supports the inhibitory effect of financing constraints on R&D expenditure;(2)From the characteristics of age,executive's age enhanced the restraining effect of financing constrains on R&D expending,and the role of state-owned enterprises is stronger than non-state enterprises;(3)From the characteristics of education,executive's education weakened the restraining effect of financing constrains on R&D expending,and the role of non-state enterprises is stronger than state-owned enterprises;(4)From the characteristics of technical background,executive's technical background weakened the restraining effect of financing constrains on R&D expending,and the role of non-state enterprises is stronger than state-owned enterprises;(5)From the characteristics of financial background,executive's financial background enhanced the restraining effect of financing constrains on R&D expending,and the role of state-owned enterprises is stronger than non-state enterprises.These conclusions provide support for the company to strengthen executive team building and maintain corporate investment.China's R&D intensity is not high and enterprises are facing strong financing constraints.While resolving corporate financing constraints,executives' appointment decisions also need to consider more personal factors.Enterprises need to continue to train young executives,while improving the level of education of executives.Enterprises need to pay attention to attract and cultivate technical executives,while rational view of the financial background of executives.