Research On The Relationship Between Government Subsidies And R&D Investment Under The Threshold Effect Of Capital Structure

Under the new normal condition of economic development,the traditional factor-driven and investment-driven methods haven't been able to maintain the sustainable economic growth of our country.In order to avoid falling into the middle income trap,the first problem to be solved in China is to transform the economic growth motive mechanism,and carry out innovation-driven development strategy,highlighting the leading role of.The scientific and technological innovation to social productivity.In order to effectively arouse the enthusiasm of innovation of the whole society,the Chinese government has introduced a series of innovation policies which include the subsidy policy to encourage the innovation behavior.Then,when the enterprises become the main innovation subject,the influence of the national subsidy policy on the innovation behavior is to promote or hinder? If it has positive effect,to what extent does government subsidies promote R&D investment?To explore the answers to these questions,scholars at home and abroad have studied the influence of government subsidy on R&D investment from different angles,but under the current social background,the research on the influence of government subsidy on R&D input is not enough.From the research results of the enterprise level,most scholars have studied the effect of government subsidy on the R&D,few scholars consider whether the effect will be significantly different under the constraints of capital structure.In fact,the capital structure of the enterprise reflects the solvency and refinancing ability to a large extent,and it also indicates the capital adequacy of the enterprise.While the government subsidy exist as the non-operating income,may provide certain fund for the R&D investment,but when the enterprise is in the high debt level,the enterprise is likely to use it for other programs.In view of this,this paper argues that the capital structure is an important factor in testing the effect of government subsidy on innovation.This paper reviews and combing the research results regarding the mechanism government subsidy and capital structure influence R&D input.On the basis of the summarizes of the previous research results,This article will discuss the degree of stimulation about government subsidy policy and corporate innovation.The main research contents are summarized as follows: firstly,this paper introduces the current realistic background and significance of Chinese government subsidy,and on this basis,explains the significance and main research methods of this research.Secondly,analyzes the relationship between capital structure,government subsidy and R&D input,this content serves as the theoretical basis of the follow-up empirical analysis.Then,the paper selects the financial data of the listed manufacturing companies from 2014 to 2016,and use the fixed effect model and the non-linear threshold effect model to analysis the relationship between government subsidy and enterprise R&D input.At the same time,it explores the moderating effect of capital structure on the relationship between the two,and further analyzes the difference of different enterprises.Finally,the conclusion of this paper is drawn,and the relevant suggestions are put forward accordingly.This article mainly draws the following conclusions: firstly,government subsidy and R&D input are positively related,the former can promote the latter role.Secondly,for the whole sample,the influence of government subsidy on enterprise R&D investment will change with the change of capital structure,showing the double threshold effect with capital structure as variable.Thirdly,by further analysis the the group regression of state enterprises and non-state enterprises,we found that the effect of government subsidy on R&D has obvious different with different property rights: Government subsidy has more obvious actively effect on non-state-owned enterprise's R&D investment,while the government subsidies did not play a significant role in encouraging R&D investment of state-owned enterprises.In a certain capital structure zone,government subsidies have even played a significant role in the extrusion of R&D investment.Finally,in order to maximize the leverage effect of government subsidy on enterprise' R&D input,the paper puts forward that the government should take the capital structure factor into account when choosing subsidy object and focused on subsidizing R&D investment of non-state-owned enterprises.