Study On Government Grants,Cash Holding And R&D Smoothing

The theory of new economic growth argues that the accumulation of knowledge and specialized human capital can generate incremental returns and increase the benefits of other input factors,and then increase the total scale of income.Under the current situation,the Chinese government to the enterprise research and development policy levers,the relevant financial subsidies increased significantly,but for the overall macro environment,long-term stability of R&D investment is more worthy of attention.On the basis of drawing on the research on the smooth development of the early research and development,this paper adds the research variables such as cash holding and government subsidy in the dynamic research and development model,and uses the sample data of the listed companies in.the industry to test the government development and cash holding and smoothing mechanism.The innovation of this paper is that through the analysis of the domestic and foreign literature,we can find that the current scholars’ research on the persistence of cash holdings and R&D investment is based on the empirical research method.The research on the research method,the domestic and foreign scholars generally choose the empirical research method to draw the conclusion of the study,Only a handful of scholars currently use case studies to analyze the relationship between cash holdings and R&D investment sustainability.This paper empirically studies the financial consequences of financial subsidies and cash holdings,and combines case:studies to provide empirical and practical evidence for financial subsidies,cash holding and R&D smooth relations.