The Correlation Study On Financing Constraints,R&D Investment And Corporate Performance

When science and technology rise,the nation is prosperous,and while science and technology is strong,the nation becomes strong as well.General Secretary Xi Jinping pointed out in the report of the Nineteenth Party Congress that innovation is the first driving force leading development and the strategic support for building a modern economic system.R&D is an important way of innovation.In the micro aspect,strengthening R&D investment can enhance the innovation ability of companies and improve their performance.In the macro aspect,it can enhance national competitiveness and promote the sustainable development of the national economy.As a key area for China's economic growth transformation and the need to break through,high-tech enterprises need to strengthen their attention to the research and development activities.However,the R&D activities of high-tech enterprises are highly dependent on internal funds because of the high cost of external financing,which is subject to financing constraints.This restricts R&D investment to improve corporate performance to a certain extent.At present,many scholars at home and abroad have examined the impact of R&D investment on corporate performance in terms of management characteristics,government subsidies,and corporate governance.Less literature has been studied from the perspective of financing constraints.Therefore,this paper studies the correlation between financing constraints,R&D investment and corporate performance.Attempts to improve the research perspective and enrich the existing research in China through the research in this paper.It can provide some reference for decision-making of R&D investment and government policy-making.This paper reviews the literature on financing constraints,R&D investment and corporate performance at home and abroad,and conducts a comprehensive review based on the literature.Secondly,the related concepts are defined.Based on information asymmetry theory,resource-based theory,technological innovation theory and principal-agent theory,this paper analyses the mechanism of the relationship between financing constraints,R&D investment and corporate performance.Then,based on China's market environment,we selected 1800 observation data from 360 high-tech enterprises listed in Shanghai and Shenzhen stock markets for five years from 2014 to 2018,and conducted empirical design and analysis using Stata software.Among them,this paper uses Logistic regression method to construct a financing constraint index,which combines five representative indicators: liquidity ratio,asset-liability ratio,return on net assets,dividend payment rate and Tobin Q value.According to this index,the sample data is divided into two groups: high financing constraint group and low financing constraint group,to compare the changes in R&D investment and firm performance.Finally,conclusions and suggestions are given based on empirical research.Through research,the main conclusions are as follows: First,financing constraints have a negative effect on R&D investment.Second,enterprises' R&Dinvestment can promote the improvement of corporate performance,and this positive correlation has a certain lag.Finally,financing constraints has a positive effect on R&D investment and corporate performance.In this paper,the regressions of the high financing constraint group and the low financing constraint group are used respectively.After comparing the regression results of the two groups,it is found that the R&D investment under the high financing constraint group has a significant positive effect on the corporate performance,while the low financing constraint group,the relationship between the two is not significant.In addition,the two control groups set up: the regression effect of the model with financing constraint variables is also better than the regression results without financing constraint variables.Therefore,the degree of financing constraints is higher than the low degree of financing constraints,which can enhance the positive correlation between R&D investment and corporate performance.