Research On The Impact Of Financal Constraints On Corporate R&D Investment

With the global integration and the technology competition,enterprises are increasingly urgent for the demand of science and technology innovation.It is well known that the cultivation of enterprise technology and innovation ability are based on the R&D investment of the enterprise.Therefore,the key factor in determining the size of an enterprise's innovation is how much investment is invested in R&D,which is also a key indicator of an enterprise's ability to innovate.However,from the real situation of Chinese companies,Chinese companies generally have less R&D investment.Now,domestic research and foreign research are generally based on the theory of the basic resources and other financial theory.Scholars from different angles to study the reasons for the lack of R&D investment in China,but few have studied the company's R&D investment financal constraints.Because the financal channels of the market affect the R&D investment of a company,the R&D investment financal problem is also a major factor affecting the company's R&D investment.Although the R&D investment of an enterprise plays an important role in the growth of the enterprise and the R&D of the enterprise is very related to the financial,the financal constraint of the firm on R&D investment is less studied.To sum up the reasons,I try to discuss the issue of R&D in China from this perspective.The research of this paper is based on the present situation of R&D investment and financal constraints of all listed companies in China.First,we use the theory of "information asymmetry" to explore the financal constraints of the company's R&D investment.Secondly,with the disclosure of R&D companies as the main source of data during the period of 2009-2015,Shanghai and Shenzhen,we examined whether the financing constraints are actually present on R&D investment.Finally,it examines whether corporate governance can alleviate the financing constraints.The empirical results show that the financal constraints faced by listed companies in China have seriously restricted the R&D investment of listed companies in China.Overall,R&D and cash holdings were correlation,indicating that listed companies hold more cash,R&D investment strength is greater.On the mitigation effect of corporate governance on the R&D financal constraints of listed companies,the empirical evidence of the article shows that independent directors and institutional stockholdings help to alleviate the financal constraints faced by R&D,while the board size has no effect.