Research On The Mitigation Effect Of Corporate Governance On R&D Financing Constraints

Innovation promotes a country's economic developing and social progress.Along with economic globalization and integration,technology innovation plays a more and more important role in a country's economic activities,which affects the country's competitiveness.The R&D activities of enterprises are attached more and more attention as they promote our country's independent innovation ability.Enterprises need a lot,sustained and stable cash flow to do R&D activities.Lack of money hinders R&D activities,which has negative effects on the enterprise's core technology competitiveness and industrial upgrading.So,the author tries to study the mitigation effect of corporate governance on R&D financing constraints.Referring to the theories of Finance,Economics and Accounting,the author studies the mitigation effect of corporate governance on R&D financing constraints.Firstly,based on the characteristics of R&D activities,the situation of R&D financing system,the asymmetric information theory,the principle-agent theory,the financing order theory and the signaling theory,the author analyses the causes of R&D financing constraints,then studies how the independent directors,the institutional investors' holdings and the ownership concentration ease R&D financing constraints.Using the data from 2013 to 2016 of Chinese A-share manufacturing listed companies,the author studies the financing constraints of R&D activities and the mitigation effect of corporate governance on R&D financing constraints.The results show that: first,generally the Chinese listed companies have R&D financing problems;second,the financing constraints of non-stated-owned enterprises' R&D activities are bigger than that of stated-owned enterprises';third,the independent directors have mitigation effect on R&D financing constraints;fourth,the institutional investors' holdings have mitigation effect on R&D financing constraints;fifth,there is a U-shaped relationship between the ownership concentration and the R&D financing constraints.In this paper,there are 3 innovations.Firstly,different from the original studies,the study of R&D financing constraints has a realistic significance in solving the problem of insufficient R&D investment.Secondly,based on Euler equation,the author constructs a model to study the R&D financing constraints of Chinese enterprises.Thirdly,the author studies the mitigation effect of corporate governance on R&D financing constraints,which help to solve R&D financing problems as well as enrich the research perspectives of corporate governance.