The Relationship Of Financing Constraint And R&D Investment On Corporate Performance

The development of human history has proved that the more the society is moving forward and the more the economy develops,the more changes it will take.One of the important factors that decides the success or failure of the reform is whether to invest in research and development to promote innovation.Now China is in the crucial stage of realizing the Chinese dream.Achievements and challenges is coexisting.We are faced with the task of changing the way of economic development and reforming the traditional industrial structure.However,all this requires us to have a spirit of innovation and we need to make great efforts to develop our research and development.R & D as one of the most well-known and flexible activities,it will be influenced by many factors from the beginning to execution.At present,many scholars at home and abroad have studied the factors that restrict R & D investment and their impact on corporate performance from different perspectives,such as corporate governance,capital structure and executive compensation.Based on this,this paper tries to study the relationship among R & D,enterprise and the financing constraints.Wish this paper can prove and enrich the existing theories with the study of specific plate,and provide some reference for the development of enterprises and policy making.Based on previous research results,combined with recent data of GEM companies,this paper applies multivariate discriminant analysis and regression to explore R & D investment in GEM,and its influencing factors and influence.At first,this paper describes the studied of the financing constraints,R & D investment,and then defines the concept of financing constraints,R & D investment;then make the basis theoretical to pave the way for the full text,and then makes necessary theoretical analysis and brief introduction of China's GEM;Finally,verify the relationship between financing constraints,and other factors use the GEM data.At first,The study found that the GEM in our country exit the financing constraints;second,different degree of financing constraints will affect the company's R & D investment level,companies facing serious financial constraints choose to reduce the investment in research and development,companies facing a little financial constraints is interesting to investment in research and development.Third,the firm performance is obviously influenced by investment of R & D,and there is a positive correlation between the two,but the impact on financial performance is lagging behind.Fourth,financing constraints is an important part that restricts the improvement of corporate performance,such as enterprises with high financing constraints are lower than those with smaller financing constraints in enterprise performance.In addition,when both financing constraints and investment of R & D are the independent variables that affect the performance of the enterprise,the former will reduce the performance of the enterprise,while the latter will improve the performance of the enterprise.Based on the above test results,this paper in intend to improve the current situation of enterprise financing constraints from the perspective of government and enterprises,so the government should improve the financial system,increase the company's R & D activities support,and enterprises themselves should use of its own funds appropriately so that performance of companies can improve.