Monetary Policy, Financing Constrains And R&D Investment

Innovation of science and technology is continuously improving and gradually becoming significant strength of nation gaining core competitiveness and healthy development in this period of "encouraging entrepreneurship and innovation". A notable feature for R&D innovation is the high risk caused by high investment, long period and asymmetric information. And there is notable intrest remained in how enterprise avoid liabilities newness and the volatility of monetary policy to make the right high-risky R&D decision. based on the monetary policy transmission mechanism theory and information asymmetry theory, this paper studied the relationship between monetary policy, enterprise's R&D investment and financing constraints.To answer questions above, this paper firstly conducted the literature review on monetary policy, financing constraints and enterprise R&D investment as well as other related fields and then came up with primary theoretical framework. Last but not least, by empirical research and hypothesis testing based on 5492 A-share listed company from 2008-2013 in China, using Excel2007, Stata12.0 and Spss22.0, this paper reached the conclusions:(1)At the background of loose monetary policy, enter-prise's external financing constraint relieves itself. But internal financing constraint increases its degree.(2)Financing constraints restrict enterprise's R&D investment. In other words, the higher degree of internal financing constraint is, the bigger restriction of enterprise's R&D investment it will be. On the contrary, higher degree of external financing constraint will promote enterprise's R&D investment.(3)There's significant negative correlation between monetary policy and enterprise R&D investment. That is to say, In the loose monetary policy implement phase, enterprise will decrease the R&D investment.(4)It does exists in China that financing constraints influcing mechanisms between monetary policy and R&D investment. In other words, Both Internal and external financing constraints have mediating effect on the relation between monetary policy and enterprise's R&D investment. Besides, internal financing restraint plays more important role than the external.Theoretically, this paper contributes the following two points:(1) it brings macropolicy into the study framework of micro-entity, which breaks through the research limits to discipline and brings a new research angle of influencing factors on enterprise's R&D investment.(2) It creatively divided financing constrains into internal and external financing constraints, and analysed the financing constraints' effect on enterprise's R&D research more thoroughly which enriched the research in related fields. Practically, this paper made contributions to the following two points:(1) As for the enterprise, the study of this paper makes him profoundly understand the possible influence which the fluctuation of monetary policy brings and act accordingly.(2) As for government, the results of this paper can help the policy maker and executant improve execution efficiency.