Financial Slack,Risk-taking And R&D Investment

The nineteen major reports of the Party pointed out clearly that "innovation is the first driving force for development and the strategic support for building a modern economic system." The development model of China's economy is changing from the factor-driven to innovation-driven.Technological innovation has become the core element of building a new modern country in China.In order to strive to realize the Chinese dream of great national renewal,the high-tech enterprise is undoubtedly the cutting-edge carrier of the national dream.Supporting the initiative of high-tech enterprises to carry on scientific and technological innovation should be the starting point for formulating various policies.The scientific and technological innovation of high-tech enterprises must be supported by corresponding resources.Enterprise resources are the core elements for enterprises to build and maintain competitive advantages.In particular,scientific and technological innovation with high risk and high investment is difficult to succeed without sufficient enterprise resources as support.Because of the uncertainty and lag of output in R&D,it is very difficult and limited to acquire resources through external financing for R&D.The R&D usually relies on the slack resources of the enterprise itself,especially the financial resources of the enterprise.Therefore,it has general realistic significance to explore the influence and restriction of slack resources on the R&D.In the era of global economy,modern enterprises are always in a fierce market competition environment,and their behavior is bound to be restricted and influenced by their competitive environment.As an external restrictive mechanism,whether the market competition can effectively relieve the agency problem of holding and using financial slack,thereby enhancing the impact of financial slack on R&D,is also the focus of this paper.This paper illustrates the following problems: Firstly,whether financial slack can promote the R&D investment.Secondly,whether the financial slack can affect the corporate risk-taking and then influence the R & D investment.Finally,as an external constraint mechanism,market competition has an impact on the relationship between financial slack,risk-taking and R&D investment.This paper chooses the high-tech listed companies as samples and carries out the empirical analysis through mediating effect model.The results of this research show that:(1)The more of financial slack,the higher of R&D investment,namely financial slack can promote the R&D investment of the enterprise.(2)Risk-taking is a mediator in the relationship between financial slack and R&D investment.On the one hand,financial slack directly increases the R&D investment,and on the other,it promotes the R&D investment by raising the level of corporate risk-taking.(3)The mediating effect of corporate risk-taking is more significant in high product market competition.This paper demonstrates that financial slack can play a positive role.Facing fierce competitive today,enterprise's operator,who has the pioneering spirit,should pay sufficiently attention to effectively allocate financial slack and take the opportunity to R&D investment.