The Differences And Changes:the Sources Of Innovation Investment Funds In The Heterogeneous Firms

Relying on the data from Chinese stock market between 2007 and 2015,this article discusses the main source of innovation investment funds in the heterogeneous firms and how it changes according to the economic environment.This article finds:(1)the main source of innovation investment funds in state-owned firms is governmental subsidy,as for non-state-owned firms,it is internal fund;(2)the main source of innovation investment funds in high-tech firms is governmental subsidy,as for non-high-tech firms,it is internal fund;(3)according to the changes of economic environment,the main source of innovation investment funds in the listed firms shows regularity likes this: governmental subsidy ? internal funds? governmental subsidy;(4)the main source of innovation investment funds in Chinese listed firms is government subsidy,when the main source of innovation investment funds fluctuates,films mainly rely on internal funds to smooth innovation investment and then rely on equity funds.What's more,in the high financing constrains firms the smoothing mechanism mentioned above is more obvious.Therefore we can get a conclusion: there are distinctions between the main source of innovation investment funds in the heterogeneous firms,and firms prefer to use governmental subsidy when the economic environment is negative.And in the past decade,government subsidy plays a key role in the growth of firms' innovation investment,and firms should optimize the order of innovation investment to make their innovation activities better.The conclusion is also a supplement to Pecking Order Theory.