Research On The Constraint Of Enterprise R&D Financing Based On Banking Competition

The "zte sales ban incident" and the "sino-us trade war" in 2018 have exposed the technical deficiencies in some core areas in China,while the practice has proved that the factor-driven "rough" economic development model is not sustainable.With the acceleration of globalization,the competition between countries in science and technology is becoming fiercer and fiercer.Enterprises are the subject of technological innovation,and the cultivation of innovation ability is based on R&D investment.Therefore,the capital invested by enterprises in R&D is a key factor determining the technological innovation ability of enterprises,and also an important index to measure the technological innovation ability of enterprises.According to current statistics show that our country enterprise R&D input of funds,innovation output quality is low,in 2017 China's overall R&D investment of 1.7606 trillion yuan,ranked second only to the United States came second in the world,but the intensity of R&D investment is only 2.13%,in the middle and lower reaches of the world's major countries position,research and development strength lags far behind our neighbors-even South Korea and Japan,it also highlights the R&D investment in China has seriously on the low side.Financing constraint is mainly based on information asymmetry,principal-agent theory and credit rationing theory.When an enterprise conducts R&D activities,its internal cash flow cannot meet its needs and it needs the support of external funds.When there is information asymmetry between the internal and external,principal-agent and credit rationing,there will be differences in internal and external financing costs,and the enterprise's R&D activities will be subject to financing constraints.The financing constraint of an enterprise is reflected in the sensitivity of the investment of R&D activities to the cash flow of the enterprise.The higher the sensitivity of the investment of R&D activities to the internal cash flow,the higher the dependence of the internal cash flow and the more serious the financing constraint on the enterprise.After years of development,although China's capital market has made great progress and enterprises have significantly increased their direct financing through venture investment and capital market,the financial system dominated by the banking industry determines that indirect financing through bank lending is still the main way for Chinese enterprises to obtain funds.Therefore,based on the data of a-share non-financial enterprises in Shanghai and shenzhen stock markets from 2010 to 2017,this paper constructs an investment-cash flow model to test whether the R&D investment of listed enterprises has financing constraints and the degree of financing constraints,as well as the mechanism for competition in the banking industry to alleviate the financing constraints of enterprises.The empirical results show that there is a significant positive relationship between the R&D input of listed enterprises and internal cash flow,indicating that the R&D input of listed enterprises in China generally has financing constraints.At the same time,the financing constraints on R&D input of enterprises with different property rights and enterprises with different scales are also different.Compared with state-owned enterprises,the financing constraints on R&D input of private enterprises are more serious.The financing constraints on R&D investment of enterprises of different scales are also different.Compared with large-scale enterprises,the phenomenon of financing constraints on R&D investment of relatively small enterprises is stronger.For enterprise financing constraints,the banking competition can effectively relieve functioning of financial markets,banking competition to the R&D financing constraints of listed companies of different property rights relief effect is different,compared with the listed state-owned enterprises,banking competition for private listed enterprises R&D financing constraints,alleviate the effect is more obvious;The alleviating effect of banking competition on the constraints on R&D investment of listed companies with different scales is also different.The alleviating effect of banking competition on the constraints on R&D investment financing of listed companies with smaller scales is obvious,but the alleviating effect of banking competition on the constraints on R&D investment financing of listed companies with larger scales is relatively weak.Through empirical research,it is found that banking competition has a more obvious alleviating effect on the financing constraints of R&D input of private enterprises and small and medium-sized enterprises that occupy the dominant position in China's economic market,and can also greatly promote the initiative of innovation subjects in the innovation market.