An Analysis For The Effect Of External Financing Structure On R&D Input In The Information Technology Industry

Innovation is the soul of a nation.At present,innovation has become a global issue.All countries in the world regard innovation as an important development strategy.Technological innovation can not only promote economic growth,but also enhance the competitiveness of countries and enterprises.The key to innovation is R&D.In recent years,in order to promote innovation,China has continuously increased its research and development efforts.Although the R&D investment intensity reached a new height of 2.12% in 2017,in view of the growth trend of R&D funding in recent years,if we want to achieve the target requirement for R&D input intensity in the “Thirteenth Five-Year Plan”,which is to reach 2.5% in 2020,we still faces enormous challenges.Unlike general investment activities,R&D investment often requires large and sustained capital investment.The financing factor can be said to be the most important factor.Therefore,under the circumstances that innovation demand and R&D are insufficient,it is of theoretical value and practical significance to study how to optimize and adjust external financing structure to promote R&D investment.This article systematically reviews related literature at home and abroad firstly,and then proposes the purpose and method of research.Based on theories such as agency theory and information asymmetry theory,the article systematically elaborated the impact mechanism of external financing structure on R&D investment.Based on the theoretical analysis,this paper uses the panel threshold model and the fixed utility model to use the five-year panel data of 199 listed companies in the Shanghai and Shenzhen A-shares market in 2011-2015,and empirically studies the external financing factors for R&D investment.Impact effects,and through empirical findings seek to adjust external financing structure to encourage companies to increase R&D investment advice.The research results show that when the asset-liability ratio is the threshold variable,the model has a unique threshold,and the R&D input presents a “U” trend as the debt-equity ratio increases;the long-term debt ratio,ownership concentration,and the degree of equity balance do not contribute to R&D.Threshold utility is produced,but both have a significant linear relationship with R&D investment.Among them,the long-term debt ratio,equity concentration and R&D input were negatively correlated;the degree of equity balancewas positively correlated with R&D investment.Therefore,companies should flexibly use external financing methods,combine their own development stages,and promote technological innovation by increasing R&D investment.