The Relationship Between Financing Constraints And R&D Investment Based On Chinese Hi-tech Enterprises

Since the 18 th National Congress of the People's Republic of China,China's investment in R&D has continued to increase,and research and experiment(R&D)funding growth continues to outpace economic growth.The report of the 19 th Congress proposed that innovation is the primary driving force for development and strategic support for the construction of a modern economic system.China has driven innovation and development to a certain degree.However,compared with the United States and other top technology powers,there is still a certain gap in the level of research investment in China.Chinese enterprises are faced with the problem of insufficient investment in R&D.The important factor that limits the level of R&D investment in Chinese companies is the lack of funds.From the perspective of financing constraints,this paper studies the problem of insufficient R&D investment in China's enterprises,and discusses the mitigation effect of cash holding on financing constraints from the perspective of cash holding.Taking China's high-tech enterprises as a sample,we study the issue of insufficient investment in R&D of high-tech companies in China from the perspective of financing constraints.First,starting from the characteristics of R&D investment,combined with information asymmetry theory and principal-agent theory,we analyze the issue of financing constraints and R&D investment in high-tech companies in China at the theoretical level,and at the same time explain theoretically that cash holdings constrain Financing R&D investment.Secondly,taking the listed high-tech companies that disclosed R&D expenditures as a sample from 2015 to 2017 and measuring the financing constraints faced by the companies by constructing a financing constraint index.So,we can establish a test model for the existence of financing constraints,a test model for cash holdings by R&D investment,and financing,the correlation test model between constraint and R&D investment and the hedging effect test model held in cash are gradually studied,and the relationship between financing constraints and R&D investment is gradually studied.Based on this,we further explore the hedging effect of company's cash holdings on R&D investment-cash flow sensitivity.The research results of this paper show that the R&D investment of high-tech enterprises in our country is significantly sensitive to cash flow,so the R&D investment of high-tech companies has financing constraints.Also,the financing constraints of high-tech companies have caused significant obstacles to the R&D investment of companies,which limits the improvement of R&D investment level.At last,there is a positive correlation between cash holdings of high-tech enterprises and R&D investment,and the hedged effect of the sensitivity of cash holdings to R&D investment-cash flow mitigates the financing constraints faced by companies.Based on the above conclusions,strengthening management of cash flows,establishing cash reserves,strengthening policy guidance,and improving external financing environment can effectively alleviate the financing constraints faced by high-tech enterprises in R&D investment.