Research On The Influence Of Financing Cost On Technological Innovation Of Enterprises

Technological innovation is a special and important investment in China and even internationally.It has the characteristics of high yield,high risk,and long recovery cycle.If we cannot continue to carry out technological innovation,then under the same conditions of other market conditions,because the marginal remuneration is continuously decreasing,the stagnation of the production efficiency of the company will be the inevitable outcome.The existence of endogenous growth theory makes technology innovation a tool to help companies overcome the problem of diminishing marginal returns and has the ability to break the stalemate of production efficiency.Because technological innovation is unique,the laws governing the overall cost of financing may not be fully applied.Given the importance of technological innovation,it is necessary to conduct a special study on the impact of financing costs on corporate technological innovation.This paper attempts to examine the level of technological innovation of state-owned and private enterprises in China from the perspective of financing costs.It provides experience and evidence for how financing costs affect the technology innovation level of listed companies in China.This article will use a combination of empirical analysis and normative research to use the sample data from the Guotaian database to study the relationship between financing costs and technological innovation.In the normative analysis section,this article integrates domestic and foreign scholars' research results on financing costs and corporate technological innovation.It also uses information asymmetry theory,financing theory,and other related theories,and combines simple model analysis,from agency and information asymmetry.The aspects of the impact of financing costs on technological innovation of enterprises were discussed in terms of aspects;in empirical tests,this paper intends to use the model of Aghion and fixed effect model to measure financing costs and technological innovation,and use SPSS22.0 for regression analysis.Reasonable interpretation and analysis of the data obtained,and the establishment of the hypothesis or not.Finally,combining the entire research process and the final conclusions,we propose rationalization.The research shows that the financing cost is significantly positively correlated with the level of technological innovation of the company,among which the debt financing cost plays a leading role.When the difference between the financing costs of private enterprises and state-owned enterprises is too large,the level of technological innovation of both types of enterprises will be inhibited,and the impact of private enterprises will be more significant.The research results in this paper provide more convincing evidence for the relationship between corporate financing costs and technological innovation in China and provide a new perspective for the factors that influence technological innovation.