Research On The Relationship Between Capital Structure,R&D Investment And Corporation Performance

With the continuous deepening of globalization and intensifying competitive pressures in China,Chinese enterprises are gradually realizing the importance of scientific and technological innovation.R&D investment is an important channel for enterprises to acquire new technologies and enhance their innovative capabilities.The enthusiasm of Chinese enterprises in carrying out research and development activities was fully mobilized by the work of "Double Creations".R&D investment is an important strategic investment decision of an enterprise,which is influenced by many factors,which is also bound to be influenced by the financing structure of capital structure,and ultimately affects the company's performance.Since the establishment of Growth Enterprise Market(GEM)on October 23 th,2009,570 companies have been listed on the GEM by the end of 2016.The launch of the GEM is mainly to support high-tech small and medium enterprises and improve China's capital market.The R&D investment of GEM companies is much higher than that of other listed companies.At present,domestic and foreign scholars' research on R&D investment is mainly focused on the economic benefits of R&D investment and the influencing factors of R&D investment,few of them are from the perspective of capital structure adjustment to consider the correlation between R&D investment and company performance.Therefore,this paper choose the GEM listed companies as the sample to study the correlation between capital structure,R&D investment and company performance by introducing the capital structure as a variable.This essay selects the method of empirical research to analyze the relationship among capital structure,R&D investment and company performance of the GEM listed companies.First of all,this essay reviewed the domestic and foreign scholars' research literature in related fields,and analyzed the accounting principles and influencing factors of R&D investment,the characteristics and relevant status of GEM in China.Secondly,the research hypotheses of this dissertation were put forward based on the theory of capital structure,such as trade-off theory and agency cost theory,and related studies of existing scholars.Then,this essay selected GEM listed companies from 2013-2016 as samples and multiple regression model to verify the research hypotheses,using the assetliability ratio to measure the capital structure,the ratio of total R&D investment and operating income to measure R&D intensity and Tobin's Q to measure company performance.This paper mainly constructs three regression analysis models to examine the relationship between capital structure and R&D investment,R&D investment and corporation performance and the regulation effect of capital structure on the relationship between R&D investment and corporation performance.Finally,some policy suggestions are put forward based on the conclusion of this study,and the future research prospects are put forward according to the current trends and the lack of this research.The empirical research results show that: the asset-liability ratio of GEM listed companies is negatively related to the R&D investment,which means the greater the debt ratio,the smaller the R&D investment intensity;R&D investment has a significant contribution to the performance of the company;The capital structure has a negative regulatory effect on the relationship between R&D investment and corporate performance,which means R&D investment of companies with low debt ratio has a stronger effect on corporate performance than those with higher debt ratio.