Research On Thr Relationship Between Financing Constraints And R&D Investment

With the acceleration of the process of globalization,the ability of technological innovation has become a driving force for countries and enterprises to gain a firm foothold in the international competition.The party’s "Nineteenth Congress" pointed out: "Accelerating the construction of an innovative country,innovation is the primary driving force for development and the strategic support for the construction of a modern economic system." As research and development(R&D)investment,which has an important impact on technological innovation capability,has become an important strategic investment behavior in the development process.China’s R&D investment intensity is still at a disadvantage compared with developed countries such as Europe and the United States.The improvement of R&D capabilities is affected by many factors,the most important being the lack of R&D funds.The government subsidy policy as an important means for the state to solve the problem of the shortage of funds for technological innovation of enterprises has increased from 1176 to 3,036 in the 10 years from 2007 to 2016,an increase of more than 158%.The proportion of subsidized listed companies in all listed companies also increased from 69.7% in 2007 to 94.2% in 2016,with a growth rate of 35.2%.Therefore,the purpose of this paper is to investigate whether government subsidies can effectively alleviate the financing difficulties faced by enterprises,and then improve the level of technological innovation.The contents of this paper are as follows: First,the background and significance of the research are elaborated.Based on this,it is proposed whether government subsidies can alleviate the financing difficulties faced by enterprises and increase R&D investment.Secondly,on the basis of the existing research results,the effects of financing constraints on R&D investment,as well as the effect of government subsidies on R&D investment and the effect of government subsidies on the adjustment effect of government subsidies on R&D input of companies constrained by financing constraints are reviewed..Point out the expansion of previous research in this paper.Afterwards,combining information asymmetry theory,principal-agent theory,preferential order financing theory and signal transmission theory,the mechanism of financing constraints restricting R&D investment in enterprises is analyzed,and it is believed that the government can mitigate the financing constraints suffered by enterprises from the following two aspects: The government subsidy can directly increase the internal capital of the enterprise and reduce the external capital demand of the enterprise.On the other hand,the government subsidy can reduce the information asymmetry between the capital supply and demand parties and increase the external financing amount of the enterprise.Finally,based on the A-share listed companies in China’s Shanghai and Shenzhen stock markets,the listing mechanism was tested.The results of the study found that when the company lacks funds and is subject to financing constraints,the company will reduce R&D investment,and the stronger the degree of financing constraints the company receives,the lower the R&D input intensity.Government subsidies can ease the financing difficulties faced by companies and improve their technological innovation.At present,the regulatory mechanism of government subsidies in China’s A-share listed companies is mainly through the government granting government subsidies to pass on valuable information to potential investors in the society,thereby weakening the information asymmetry between supply and demand of funds to a certain extent,and increasing the number of investors.The willingness to invest reduces the financial constraints of the company.Based on the above conclusions,this paper believes that in order to give full play to the positive role of the government in promoting the investment in technological innovation of enterprises,we can proceed from the following two aspects:(1)The government should eliminate the phenomenon of “ownership discrimination” of government subsidies and strengthen subsidies for private enterprises.Make funds flow to areas that are more in need;(2)Establish a sound screening mechanism for subsidies,increase the value of subsidies,and allow limited government subsidies to play the role of “a couple of things”.Compared with previous studies,the contribution of this paper is: based on information asymmetry theory,principal-agent theory,preferential financing theory,and signal transmission theory,starting with the government subsidy,an important means of national macroeconomic regulation and resource allocation,and using government subsidies as The adjustment variables test their influence on the financing constraints and the R&D input of enterprises,and provide a relatively novel perspective for the study of R&D input and improvement of government subsidy policies;this article uses non-listed companies of all A-share listed companies in Shanghai and Shenzhen in 2012-2016.Balance the panel data,use the logit regression model to construct a comprehensive financing constraint index to measure the degree of financing constraints of the company.The empirical analysis of this paper provides a relatively correct empirical data for R&D investment.