Research On The Effect Of R&D Investment On Financial Performance Under Financing Constraints

Successful R&D investment plays an important role in the formation of the core competitiveness of enterprises.For the pharmaceutical industry,which is implementing the policy of "Science and Education Promoting Drugs",the importance of R&D investment is self-evident.However,compared with the developed countries,the R&D investment of China’s pharmaceutical industry is obvious insufficient.The lack of R&D funds will undoubtedly affect R&D investment.Therefore,it is necessary to analyze the phenomenon of insufficient R&D investment from the perspective of financing constraints.Usually,enterprises with serious financing constraints will pay more attention to the use of funds.Are there any differences in the impact of R&D investment on financial performance under different financing constraints? This paper attempts to have a further discussion on this question.According to the theory of life cycle,there are differences in the operation,management and strategic objectives and other aspects for the enterprises in different life cycle stages.In the study of R&D investment lag,this paper selects the growth and maturity of the enterprise for comparative analysis,in order to further clarify the impact of the life cycle on the relationship between R&D investment and financial performance under financing constraints.First of all,on the basis of summarizing the domestic and foreign research on financing constraints,R&D investment and financial performance,this paper defines the related concepts(such as financing constraints,R&D investment and financial performance),and expounds the theory of life cycle,financing constraints and R&D investment.Secondly,through the investigation of the financing constraints,the research and development investment and the financial performance of the pharmaceutical enterprises in China,this paper summarizes the problems faced by the pharmaceutical manufacturers in China.In addition,the paper also makes a related analysis of the relationship among financing constraints,R&D investment and financial performance.Thirdly,this paper puts forward the research hypothesis,the definition of variablesand the construction of multiple regression models.Then we use SPSS17.0 statistical software to do empirical research.The research indicates the followings: I.Financing constraints limit R&D investment;II.The higher degree of financing constraints is,the better positive correlation appears between R&D investment and financial performance;III.Further study found that,at the same stage of life cycle,the higher degree of financing constraints faced by pharmaceutical companies is,the longer lag phase of R&D investment has;IV.Hysteresis of R&D investment of the growing pharmaceutical companies are better than the mature ones under the same financial constraints.Finally,according to the conclusion,this paper puts forward some countermeasures and suggestions to optimize the financial performance of enterprises from two angles of government and enterprise.In order to improve the financial performance of pharmaceutical production enterprises in China.