Research On The Impact Of Rent-seeking Behavior On Enterprise's R D Investment From The Perspective Of Financing Constrains

R&D investment is not only the source and key of enterprise innovation,but also the main driving force of economic growth.For many companies,due to high external financing costs and asymmetric capital market information,they often face more serious external financing constraints than the general investment in the innovation process.In the process of China's economic transition,due to the lag in financial development,the lack of a sustained and stable financing channel leads to the issue of financing constraints,which is an important reason for impeding Chinese corporate innovation.On the one hand,establishing political connections through rent-seeking behavior can provide enterprises with financing facilities,tax incentives,breakthroughs in industry barriers,and access to government assistance,which in turn promotes companies to further increase R&D investment.Therefore,the way of rent seeking is considered by many companies as a shortcut to solve the problem of capital constraints.More and more companies are using this method to establish links with the government.In the process of China's economic transformation,due to the imperfect construction of various systems,the lack of fair market competition environment and protection mechanism,enterprise innovation faces many risks.Therefore,based on the special institutional background of China's economic transformation,this paper examines the impact of rent-seeking behavior on R&D investment under the financing constraints,through in-depth theoretical and empirical analysis.By employing the micro data of A-share listed companies for 2012-2016,and using the ratio of hospitality and travel expenses to the operation revenue as a proxy to the rent-seeking expenditure of the enterprise.This paper empirically analyzes the impact of rent-seeking behavior on research and development investment from the perspective of financing constraints.The empirical results show that rent-seeking behavior helps to alleviate corporate financing constraints and promote research and development investment.Secondly,this paper finds that a certain degree of rent-seeking activity is beneficial to enterprise innovation,and a higher degree of rent-seeking will inhibit enterprise innovation,that is,the relationship between rent-seeking behavior and enterprise innovation input shows a significant inverted U curve relationship.This is because in the absence of a formal system,rent-seeking is likely to be a price for an enterprise to seek political asylum for innovative enterprises,but rent-seeking will inhibit enterprise innovation when the cost exceeds the earnings of the enterprise.Further research shows that the relationship betweenrent-seeking expenditure and research and development investment of listed companies will show significant differences with the changes in the ownership,scale and market environment of the enterprises.The above results not only improve the research on the impact of the informal mechanism on the research and development investment of Chinese enterprises,but also play a certain inspiration for the successful transformation of China's economy and the policy making of promoting enterprise innovation.