Research On The Factors Affecting Financing Constraints Of The Research And Development Investment-a Study Of Listed Manufacturing Firms In China

With the globalization of the world economy,more and more literatures at home and abroad highly emphasize the significance and importance of Research And Development Investment(R&D).The R&D project of the long-term and periodic characteristics of the decision requires a lot of long-term funds,financing these funds mainly from the enterprise(operating cash flow,retained earnings)and exogenous financing(equity financing,debt financing).In reality,because of China's capital market is not perfect and R&D investment inherent information asymmetry makes the external financing of investment in R&D when faced with higher financing costs,or even impossible to obtain external financing,which leads to the problem of investment financing constraints R&D.In our country,because of the special system and market situation,many factors will influence the R&D financing restriction.Thus,this paper focuses on the study of the factors affecting R&D investment under financing constraints.First of all,this paper abandons the two basic models of Tobin Q model and investment acceleration model which are used by domestic scholars before researching financing constraints.Because the two models have drawbacks and are not suitable for China's economic market situation.Euler equation is used as the basis of modeling.In view of the needs of this study,we further introduce internal cash flow,debt financing,equity financing to characterize the financing variables of internal and external sources.On this basis,taking into account the cash holdings may have a smooth effect on R&D investment,this paper further introduces the introduction of cash holdings,which makes the model more perfect.In order to explore the influencing factors of R&D financing constraints,this paper lists the factors from two aspects of macro and micro.At the micro level,this paper takes the firm size,enterprise age and the ownership of enterprises as the influencing factors.At the macro level,this paper takes the economic cycle as an influential factor.It is worth mentioning that,considering the consistency with the current economy,in choosing the micro scale enterprise scale standards,this paper for the first time proposed value-added tax as a standard.The scale of assets,the number of employees,sales,etc.,which were proposed by previous scholars,are used as a standard for robustness testing.In order to analysis the hypothesis,this paper selects the 2008-2016 financial data China A shares listed manufacturing companies as the sample,retained for four consecutive years and above the data form unbalanced dynamic panel data,and sorting through the whole sample and the related factors of the formation of sub samples,using one step moment estimation of legal system through the empirical test of the model.The results show that: Overall,the internal cash flow is the main source of financing for enterprise R&D investment made in our country;the existence of smooth effect on R&D's corporate cash holdings;small and medium-sized enterprises,young and middle mature enterprises and private enterprises are external financing constraints obviously,and the big enterprise,mature enterprise and the central government and the local government controlled enterprises showed no significant financing constraints;the enterprises are facing financing constraints of economic contraction significantly,while the economic expansion of enterprises showed no significant financing constraints.The research of R&D investment on how to allocate funds to ease the financing constraints,it is important to improve the core competitiveness of enterprises,is conducive to China's enterprises to understand the financing constraints of different factors in the Chinese imperfect capital market investment for enterprise R&D effect,can control self adjusted and supplementary measures to ease the financing the existing constraint.In addition,this paper further considers the smoothing effect of cash holding on R&D investment,and also provides some reference value and advice for the management of liquidity.As for the government,China's current R&D investment is far better than the western developed countries,how to guide enterprises to increase investment in R&D,reasonable to help enterprises to ease financing constraints problem to a certain extent,enhance scientific and technological innovation for the guiding role of promoting economic growth,further enhance China's international status,become the real economy also has a certain the meaning.