A Study On The Impact Of Cash Holding And Cash Flow On Corporate Innovation Investment

Innovation is positioned as the strongest driving force of economic development,scientific and technological innovation has also been identified as the most important strategic support of comprehensive national strength.In 2015,the total R &D expenditure of the whole society in China is second in the world.However,the strength and structure of the research and development have a large gap with the developed countries.In order to explore the reason of these short board,the China Gem enterprise 2009-2015 years of financial data,using the fixed effect and the system GMM estimation method of enterprise innovation input causes the total lack of structure,poor.This article from the basic theory of corporate finance,that information asymmetry and agency cost problem of the high risk of innovation investment financing constraints,so the existence of innovation investment is dependent on their own cash phenomenon.Through empirical analysis concluded:(1)Enterprise innovation investment and cash flow is related to the cash flow and the relationship is more significant,confirmed the establishment of financing constraints theory;(2)The innovation of investment and enterprise at the end of the money stock is inversely related,innovation projects in the deployment of operating cash flow,cash and cash equivalents will be the source of innovation project further investment;(3)There are significant differences between the two stages of development,characteristics of the second phase of the emergency makes its sensitivity to cash flow than the first stage;(4)From the analysis of industry and enterprise scale perspective,more sensitive to the fluctuation of the cash flow of small scale enterprises and information technology software the industry,the main reason is the financing constraints of these two types of enterprises are more.Based on the theoretical and empirical results,this paper provides suggestions for improvement from the perspective of enterprises and government.From the point of view of the enterprise:from the financial point of view,we need to improve the ability of financing and financing to improve the cash management system.In addition,we need to do a good job in the long-term planning of innovation,in order to change the time for the idea of space research and development funds.From the government point of view: do the whole social credit system infrastructure is the basis,with the development and improvement of different levels of financing system,supplemented by a major innovation enterprises to be precise incentives.