A Research On The Impact Of Bond Financing On The Innovation Of Listed Companies

Innovation-driven development is China's major strategy,which determines the future development path of the country.The innovation for the company has been emphasized by the government for a while,this can be observed from the 19 th Communist Party of China National Congress.Promoting innovation is based on enterprises,and the innovation capability of enterprises is the driving force for economic growth and development.The enhancement of enterprise innovation capability requires sufficient and stable capital investment.The high risk of enterprise innovation investment,the long-term characteristics and the information asymmetry of enterprise innovation financing make the difficulty of innovation financing for enterprise become the most important factor hindering enterprise innovation.What kind of financial system should the government adopt to build a financial system that can help solve the problem of enterprise innovation financing,and promote enterprise innovation is what many scholars have discussed and explored.In response to the difficulty of financing innovative enterprises,the government has made various attempts.For example,in recent years,the National Development and Reform Commission,China Securities Regulatory Commission and National Association of Financial Market Institutional Investors has started to implement innovative corporate securities.Double-invasive special debts,double-invented corporate bonds and dual-invented special debt financing instruments are the three types of debts available to the company in the current market.Whether dual-creation debt can really promote enterprise innovation remains to be explored.Double-creative corporate bonds are the most promising one,and their essence is still corporate bonds.Based on this,this paper got the idea of doing a research on the impact of corporate bonds on corporate innovation,and made recommendations for the government to formulate policies to support enterprise innovation.In this thesis,we analyzed the data sample for the Corporate Bond between 2014 and 2017,by using the double difference model to analysis the effect from Bond Issuance for enterprise,to testify the influence of Bond Financing to the innovation for enterprise.We have found: The Corporate Bond Financing of manufacturing and Information technology industry indeed promotes the innovation of enterprise,and this conclusion would still be hold in the case when R & D spending and the number of R&D staff are taken as explained variables.From the perspective of financing constraint theory,cash smoothing theory,term matching theory and innovation incentive effect,this paper verifies that bond financing can promote enterprise innovation.When company size is distinguished inside the control group,the influence of bond financing on enterprise innovation is different in these two groups,we found that the Debt Financing for big company could not obviously effect the R&D capital investment,while the Debt Financing could influence the R&D capital investment for small company,this is consistent with the conclusion of the financing constraint theory that large enterprises face fewer financing constraints and have advantages in terms of financing.What we have found could practically prove the positive effect of developing the innovation and entrepreneurial securities to promote the innovation of enterprise,especially for these small enterprises.This provides not only a strong evidence for necessity of developing innovative entrepreneurial bond market,but also a hint to formulate the policy by the government to promote the innovative market,innovative bond.