Financing Constraints And Its Impact On R&D Investment For Chinese SMEs

With the modern economic conditions,SMEs play an important role in realizing the drive for innovation in economic development.However,in the course of development,SMEs still face constraints from various factors such as capital,system and environment in their development.Due to the late start of Chinese SMEs,the internal management system is not perfect.At the same time,China's capital market and related policies and regulations are still in the process of gradual improvement,and financing difficulties have become an important factor restricting the development of SMEs and further R&D investment.At present,domestic scholars are still applying the existing foreign models in researching SME financing constraints and R&D investment,and have not fully considered the SMEs'characteristics and institutional environment background.In order to enrich the research on financing constraints of SMEs in China,further explored the impact of financing constraints on R&D investment of SMEs,and improved the market competitiveness of SMEs.it is necessary to conduct research on financing constraints and R&D investment for SMEs in China.This paper sorts out the financing constraints and R&D input related literature,based on information asymmetry,financing priority order,resource basic and corporate social capital,analyze the impact of financing constraints formation mechanism and financing constraints on SMEs'R&D investment on theory,and according to the references and characteristics of SMEs,this paper selects the alternative indicators to measure the financing constraints of SMEs from the internal factors and external factors,and takes the SEE and the GEM listed companies in 2012-2016 as the research objects,which is pre-grouped by the size and the age of the SMEs.Then,according to the characteristics of R&D investment and the impact mechanism of financing constraints on R&D investment of SMEs,the corresponding research hypothesis is put forward.Taking the small and medium-sized board and GEM listed companies in 2013-2016 as the research object,the financing constraint index obtained in the previous article is taken as the independent variable to empirically test the impact of financing constraints on R&D investment in China's SMEs.Through the study of the paper,the following conclusions are drawn:(1)The model of measuring financing constraints of SMEs in China is realized through Binary Logistic Regression and 7 variables from capital structure,profitability,growth ability,shareholding structure and macro-index are obtained.However,Tobin Q and Dividend Payout Rates commonly used in study are not currently applicable to explore the financing constraints of SMEs in China.Since Finance Charge less than 0 in generous SMEs,Interest Protection Multiples is also inadequacy for exploring the financing constraints of SMEs in China.(2)Through the stepwise regression method of multiple regression,this paper finds that the enterprise R&D investment has a good long-term sustainability.There is a positive correlation between the R&D inputs of the small and medium-sized enterprises in the adjacent period,and financing constraints have different effects on R&D investment in SMEs with different ownership properties and their respective industries.For private SMEs,the relationship between R&D inputs in each period is closer,and the impact is more profound.The impact of internal cash flow and financing constraints is very significant.The R&D investment of state-owned SMEs is only affected by the size of the company and the R&D investment of the current enterprise.Compared to other industries,R&D investment in manufacturing SMEs is more sensitive to financing constraints.