Empirical Research On Financing Constraints,Cash Holdings And R&D Investment Efficiency

19th CPC report emphasizes adoping a new vision for development namely the vision of innovation,coordinated,green and open development that is for everyone.Everyone in the Party should develop a good grasp of the essence and rich implications of the Thought on Socialism with Chinese Characteristics for a New Era and fully and faithfully apply it in all our work.The innovation is the first power of the development.So the innovation will go though all work of our country and the Party.National innovation can not be separated from the R&D activities of enterprises,especially the high-tech enterprises that put R&D as the main task.Therefore,the government increasingly invests their R&D activities.Encouraged by the national policies,high-tech enterprises continue to increase R&D investment,but the efficiency of R&D investment is not satisfactory,resulting in the waste of resources in enterprises and countries.Therefore,high-tech enterprises not only raise the intensity of R&D investment,more importantly but also focus on R&D investment efficiency.Through the analysis of the actual situation and the current research status,it can be seen that the financing constraint is the main factor that affects the efficiency of R&D investment.However,the way in which the financing constraint affects R&D investment efficiency and the effect have become the focus of academic research.After reviewing a large amount of literature on the relationship between financing constraints and R&D investment,between financing constraints and investment efficiency,the paper argues that cash holding has played an intermediary role in the relationship between financing constraints and R&D investment efficiency.In the period of 2012-2016,high-tech enterprises are selected as the research objects.Based on the combination of Binary Logistic Regression Model,Richardson Investment Expense Improvement Model and Multivariate Linear Regression Model,this paper proposes hypotheses and conducts empirical analysis to verify the proposed Assumptions,in order to ensure the stability of the conclusions of the stability test,based on empirical conclusions made policy recommendations.The conclusion of the empirical research is that the financing constraints of high-tech enterprises and R&D investment efficiency is inverted U.This is due to at a lower level of financing constraints the moderate increase in financing constraints can ease the agency problem between shareholders and managers,thus reducing excess phenomenon of R&D investment and improving the efficiency of R&D investment.At a higher level of financingconstraints,the high financing constraints will inevitably lead to insufficient R&D investment,and R&D investment efficiency declines.The financing constraint of high-tech enterprises is negatively related to the cash holdings because the higher the financial constraints of the enterprises,the production and business activities of the enterprises will be affected,so as to reduce the amount of cash holdings left from the free cash flow.High-tech enterprises R&D investment efficiency is positively related to the cash holdings,because low cash holdings will lead to inefficient R&D investment,high cash holding will make the mechanism of alleviating the agency problem play a role in order to reduce excessive R&D investment and improve the efficiency of R&D investment;based on the above three kinds of opinions,cash holdings play part of the intermediary effect in the relationship between financing constraints and R&D investment efficiency.Based on the conclusions of the study,policies and suggestions are proposed in the aspects of high-tech enterprises,financial institutions and nation to improve the R&D investment efficiency of high-tech enterprises.The main innovation is finding that cash holding plays the intermediary effect in the relationship between the financing constraints and R&D investment efficiency.Because cash holdings play a part of the intermediary effect,it indicates that financing constraints can also directly affect the R&D investment efficiency,and they are the inverted U relationship.