Accounting Conservatism,Financing Constraints And Enterprise Innovation

In recent years,economic growth has increasingly relied on the innovative development of enterprises.According to statistics,the contribution rate of technological innovation to economic growth has become higher and higher as time goes by.In the early 20th century,it was 5%-20%.It jumped to 70%-80%in the 1980s and to 90%in the information highway period.Innovation is the first driving force to lead the development of the whole country.However,according to the current situation,China's R&D investment is obviously low.When other countries'companies are increasing their investment in innovation,our companies are stagnating.Many companies have weak core competitiveness,low added value,slow development as long as a harsh economic environment.The development status is not optimistic.Especially with the deepening of globalization,the importance of innovation has become increasingly prominent.If China wants to strengthen its overall national strength and build an inmovative country,this problem must be tackled.Companies are also aware of this and the need for technological innovation is growing.Due to the long development cycle of innovation activities and the fact that most of the outputs are intangible assets with high value uncertainty,the risk and uncertainty of innovation activities are large,and tlie financing constraints are more serious.At the same time,the specific information of innovation activities is generally classified as trade secrets,transparency is not high and information asymmetry is more serious.Accounting conservatism can alleviate information asymmetry.Therefore,this paper takes the 2010-2017 China GEM listed company as a research sample,tries to study the problem of insufficient R&D investment in China from the perspective of financing constraints,and further explores the relationship between financing constraints and enterprise innovation under different accounting conservatism conditions.The difference provides a reference for improving the innovation level of Chinese enterprises.The conclusions of the study are as follows:(1)Financing constraints have a significant negative correlation with corporate innovation,that is,financing constraints have a significant inhibitory effect on corporate innovation;(2)The weakening effect of financing constraints on enterprise innovation is more significant in enterprises with lower accounting conservatism.According to the research conclusions obtained in this paper and considering the actual situation in China,this paper puts forward the following suggestions:(1)The GEM listed companies should actively strengthen their own strength and independently explore ways to solve the financing dilemma;(2)The government should develop and enrich financing tools to broaden the financing channels of GEM listed companies;(3)GEM listed companies and supervision Institutions should increase their emphasis on accounting conservatism;(4)The government should improve laws and systems for corporate innovation.