Correlation Of Financing Constraints And Corporate R&D Investment:Evidence From Technology

The18th National Congress points out that the extensive mode of economic growth must be changed, it must promote the combination of economy and technology, and build an innovative oriented country. Enterprise is not only the basis for economic development, but also the subject of technological innovation. Inadequate levels of R&D and R&D capabilities directly affect innovation and development in China. In the factors of influencing R&D investment, the scarcity of funds will undoubtedly restrict spending corporate R&D activities, but domestic study on this issue is less. Therefore, this paper tries to explore into the deficiencies of R&D investment in China’s technology-intensive industry from the financing constraint perspective.This paper adopts the research method of combining theoretical analysis and empirical. First, on the basis of the analysis of corporate R&D investment characteristics, study the origin of financing constraints problems of corporate R&D investment from asymmetric information theory and agency theory perspective; Secondly, on the basis of cash holdings theory to analyze the influence of corporate cash holdings management for corporate R&D investment; Finally, by using the samples of2008-2012R&D spending disclosure of693listed companies in technology-intensive industries, builds self-financing constraint index to measure the degree of financing constraints of enterprises, empirical tests of the financing constraints impact on corporate R&D investment, and explores the relationship between corporate R&D investment and cash holdings.Results of this study show that:(1) R&D investment of China’s technology-intensive industries listed companies in significant cash flow sensitivity, indicating that corporate R&D investment in the presence of financing constraints issues, corporate R&D projects is more inclined to the endogenous financing, but have not been strong support by equity financing and debt financing;(2) financing constraints of technology-intensive industries listed companies severely restrict the company’s R&D investment intensity;(3) corporate R&D investment and cash holdings showed a significant positive correlation, sufficient cash have a hedging effect on R&D financing constraints, reducing the effects of fluctuations in cash flows of R&D investment.