Capital Structure,Product Market Competition And Enterprise Innovation Input

Innovation is the inexhaustible driving force of national development.At present,China's scientific and technological innovation capability has been significantly improved,but there is still a big gap compared with the international advanced level.How to increase the investment in enterprise innovation has become a key to China's entry into the forefront of innovative countries and to build a strong scientific and technological country in the world.As a reasonable capital structure can provide long-term and effective financial support for enterprise innovation,capital structure has become an important factor affecting enterprise innovation investment.At the same time,product market competition as the most important external governance mechanism can reduce the principal-agent problem caused by information asymmetry,help enterprises to make correct innovation investment decisions,it is very necessary to introduce product market competition to study the relationship between capital structure and innovation investment.China formally established GEM in 2009 to provide financing platform for high-tech enterprises.Compared with the main board market,GEM listed companies have higher growth and greater development prospects,and have become the main group of innovation in our country.It is more practical to take it as a sample study.Taking the listed companies on GEM from 2012 to 2017 as samples,this paper uses the new capital structure theory,modern competition theory,information asymmetry theory,principal-agent theory and innovation theory,and combines literature research,normative research and empirical research to study the capital structure(debt structure and equity structure,including equity concentration and equity checks and balances).The relationship between innovation investment and product market competition is studied,and the regulatory role of product market competition on the relationship between capital structure and enterprise innovation investment is further explored.The results show that: firstly,the capital structure will have a significant impact on the innovation investment of enterprises.Debt structure,ownership concentration and innovation investment are negatively correlated,while equity balance and innovation investment are positively correlated.Secondly,product market competition will regulate the relationship between capital structure and enterprise innovation investment.Product market competition weakens the negative effectbetween debt structure and enterprise innovation investment,ownership concentration and enterprise innovation investment,and strengthens the positive effect of ownership checks and balances on enterprise innovation investment.According to the above conclusions,this paper puts forward some policy suggestions,such as optimizing the capital structure of enterprises,improving the capital market of our country,speeding up the process of marketization,and establishing an effective market competition mechanism,so as to inject new vitality into innovation.