Research On The Effect Of Internal Capital Support Of Business Groups On The Subsidiary Corporation's Firm Value

Compared with single-enter:prise enterprises,business groups have the characteristics of illegal person,large scale,industry and products involved in a wide range,etc.and their management is more complicated and challenging.The scale and strength of the growing business groups have an impact on economic development,which cannot be ignored.With China's economy entering the new normal in an all-round way,the mode of economic growth is driven by factor-driven to innovation-driven.An important link in transforming the mode of economic development is to improve the technological innovation ability of Chinese enterprises.Although the:independent innovation ability of Chinese enterprises is constantly improving,compared with developed countries,the gap is still very large,coupled with the characteristics of high risk of R&D decision-makin,long cycle and large amount of capital required.Most enterprises find it difficult to obtain external financing for research and development,generally facing the problem of financing constraints,low innovation and insufficient motivation.From the perspective of parent-subsidiary companies,this paper explores the effect of the parent company supporting the R&D input of the subsidiary through the internal capital allocation of the group,and then explores the mechanism of the R&D input on the firm value of the enterprise.As the operating decisions of enterprises are deeply affected by the external environment,the product market competition and the capital market situation will affect the enterprise top managers to judge the overall situation,thus prompting enterprises to make different R&D strategic decisions,adopt different operating attitudes and specific actions.In this paper,using the second-hand data of 382 listed companies from 2010 to 2017,the non-equilibrium panel data of 2655 effective observation samples were obtained through certain criteria screening,and multiple regression analysis was performed using SPSS24.0 and STATA12.0 to analyze the data results.Concluded as follow:(1)The non-linear U-shaped relationship between the group's internal capital support and the R&D input of the subsidiaries,that is,with the increase of the group's internal capital support,the R&D input of the subsidiaries show a trend of rising first and then decreasing;(2)A positive linear relationship between the R&D input of subsidiaries and firm value.The more R&D input of subsidiaries,the better their firm value;(3)The non-linear U-shaped relationship between the group's internal capital support and the firm value of the subsidiary,that is,the more the group's internal capital support within,the firm value of the subsidiary will first rise and then decline;(4)The R&D input of the subsidiary plays a mediating role in the relationship between the group's internal capital support and the firm value of the subsidiary;(5)The product market competition strengthens the promotion of the subsidiary's R&D input to firm value,that is,the more intense the product market competition,the better subsidiary's R&D input will promote the firm value;(6)The capital market situation weakens the promotion of the R&D input of subsidiary and the firm value,that is,the better the capital market situation,the worse the subsidiary company's R&D input will promote the market value.Through the exploration of the above problems,this paper analyzes the mechanism of the internal capital support of the business groups on the R&D input of the subsidiary,which has important guiding significance for the rich management means of China's business groups,perfecting the internal capital market's capital allocation mechanism and effectively improving the innovation capability,competitiveness and firmvalue of the subsidiary.It enriches the research findings of enterprise inter capital market and subsidiary's strategic R&D decision,and provides some reference for the capital allocation problem and system design of diversified business groups.