Research On The Effects Of Bank Competition And Financing Constraints On R&D Investment Of Enterprises

Innovation is the driving force for the development of the national economy and the most important means to obtain the competitive advantage.It's analogous to the enterprise.The current Research and Development(R&D)expenditure accounts for 78% of the national R&D expenditure.The enterprise has become the main body of innovation.In order to continually promote the development of the national economy,it is necessary to carry on the innovation,and particularly,to promote the innovation of the enterprise.The most important part of innovation is the investment in R&D.Without this investment,it is impossible to assemble the necessary resources for the researchers.Therefore,in order to promote enterprise innovation,the investment in R&D should be met firstly.The specificity of R&D projects(great risk,long period)leads to more financing difficulties faced by the enterprise.Bank loans accounted for a lower proportion in the enterprise R & D funds,and it is not fully utilized,and one of the reasons is the cost of bank loans and the difficulty to obtain bank loans.Increasing bank competition may reduce the cost and the difficulty to loan,and then promote the enterprise R & D investment.This paper analyzes the present conditions of the investment in research and development(R&D investment)in terms of the overall scale,regional distribution and capital sources,etc.The China's total R&D investment is one of the world's top three.But there is still a big gap with the developed countries in the respect of investment intensity.Thus it's practically significant to investigate the external factors affecting the enterprise's R&D investment.Theoretically,the bank competition is withdrew from the influence of the overall financial development on the R&D investment.The focus is the role of bank competition and financial constraints.The impact of the bank competition is explained from the microcosmic point of view.In addition,a deep empirical analysis on the effect of hank competition and financial constraints is conducted in terms of the property type,industry category,regional differences,etc.This enriches the research content and also provides the basis for the specific suggestions.The balanced panel data(2009-2014)of the main-board and SME board listed companies in the stock markets of Shanghai and Shenzhen is investigated.To enhance the robustness of the empirical conclusions,both structured and unstructured methods are employed to estimate the bank competition.The overall sample regression test shows that the mitigation of financing constraints can improve the R&D investment.In order to maintain profits,banks tend to take high-risk decisions when encountering the increased competition.This enables the enterprises to acquire funds more efficiently.The interaction between the bank competition and the financial constraints shows that the bank competition promotes the R&D investment by alleviating financing constraints.Considering the ownership,bank competition can promote the R&D investment of the non-state-owned enterprises to a higher degree than the state-owned enterprises;considering the industry division,bank competition plays a more important role in promoting the R&D investment in the information technology services;considering the regions,the eastern region owes the initiative;the increasing bank competition will rise the enterprise R&D investment.At last,this paper gives some advice according to the conclusion and the current situation.