Macroeconomic Uncertainty,corporate Cash Holdings And R&D Investment

While economic globalization is in full swing,innovation has become the mainstay of the national economy.The "19th Congress" of the Party held on October18,2017 emphasized that innovation is the primary driving force for the sustained and healthy development of the country's economy,and it is a strong supply of innovation and optimization.Only by intensifying the powerful combination of economy and science and technology,can economic development depend on it.Technology can be accelerated.In the past decade or more,China has surpassed other countries to become the second largest economic power.However,the price paid for success is rather heavy,and technological innovation is a new blood for optimizing and promoting production factors.Enterprises are the most vivid manifestation of technological innovation.Research and development(R&D)is the spring of technological innovation,and it is the source of China's development from “Made in China” to “Created in China”.However,unfortunately,even under the new economic normal,there are restrictive factors that affect economic transition.In particular,the macroeconomic level has increased the uncertainty,the macro-risk risks increase,and the company's financing conditions,investment decisions and earnings expectations All of them will form constraints,and the extent and nature of the influence of the impact of financing constraints on the R&D investment and innovation performance caused by macroeconomic uncertainty are related to the adjustment of economic structure and the upgrading of economic transformation.Because R&D investment itself has the characteristics of high initial investment in research and development,high risk in research and development process,and low conversion ability of R&D results,R&D investment is affected by the level of corporate cash holdings.Similarly,risks at the macroeconomic level have affectedentrepreneurs' perceptions and confidence in the changes in the external macroeconomic environment.Under the external environment with uncertain macroeconomic conditions,on the one hand,how do companies ensure the sustained and stable investment in R&D,and on the other hand,how to avoid them? The adjustment cost of R&D investment to meet the long-term strategic layout of the company has become a major issue.Therefore,revealing the characteristics of R&D investment of listed companies in China and the factors and motives affecting cash holdings,the role of cash holdings in R&D investment is analyzed,and it is of great benefit to Chinese listed companies to formulate the most reasonable and optimal investment strategy.With regard to the continuous,stable,and healthy development of corporate R&D investment,the company's financial community began to discuss and study from the perspective of “smoothing R&D investment.” The current R&D investment strategy focuses on the long-term,systematic,and programmatic nature of investment.External macroeconomic levels,the development of enterprises will face different problems,showing different characteristics.Combine changes in the internal environment,make effective responses to external macroeconomic changes,and formulate the most appropriate and scientific investment strategies based on their own development strategies.Similarly,the R&D investment of companies will also change with the continuous changes of the macro economy,and the impact of financing constraints on R&D investment will also show different degrees.Therefore,the study of how cash holdings under different levels of macroeconomic uncertainty can smooth R&D investment issues will help companies avoid the various financing misconceptions and pitfalls that may threaten the survival and development of enterprises in all levels of the macro economy.Let companies continue to achieve a virtuous circle under various degrees of macroeconomics,keep the company healthy and progress,and enable companies to achieve rapid development and sustained prosperity.Based on the above understanding,this paper uses unbalanced panel data of listed companies from 2008 to 2016 to first verify the smooth effect of cash holdings on corporate R&D investment.On this basis,the nature of the enterprise is furtherdivided,and the differences in smoothness between state-owned enterprises and non-state-owned enterprises are tested in groups.Then macroeconomic uncertainty variables are added to capitalize on changes in cash holdings and macroeconomic uncertainties.This section conducts empirical analysis and discusses the differences in the smoothing effect of corporate cash holdings on R&D investment in different degrees of economic uncertainty.With the help of group tests,this paper analyzes the differences in the impact between state-owned and non-state-owned enterprises.As a result,it was found that the cash holdings of Chinese enterprises have a smooth effect on R&D investment.Compared with state-owned enterprises,non-state-owned enterprises have a smoother effect.Macroeconomic uncertainty can positively promote the smooth effect of cash holdings on R&D investment.Different degrees of economic uncertainty,corporate cash holdings have different smoothing effects on R&D investment.When economic uncertainty is high,corporate cash holdings have a more pronounced smoothing effect on R&D investment,and non-state-owned enterprises have a higher role than state-owned enterprises.Compared with many previous studies,the contribution of this paper is that the study of macroeconomic uncertainty can promote the smoothing effect of cash holdings on R&D investment,and use different degrees of macroeconomic uncertainty to analyze the smoothness of corporate cash holdings in corporate R&D investment Role,emphasizing should be combined with macroeconomic uncertainty,corporate cash holdings and capital markets in China R&D investment characteristics of the relevant analysis.Using the quartile method to divide the entrepreneur's confidence index provided by the Bureau of Statistics,the economic uncertainty can be divided into a large degree of uncertainty,a small degree of generality,and the division method is more in line with the macroeconomic laws that the company faces.