Research On The Influence Of Financing Constraints On Enterprise R&D Investment

In the past 40 years,With the improvement of China’s overall national strength,scientific and technological innovation capabilities have also increased dramatically.A large number of major scientific and technological achievements such as "Tiangong","Xiaolong",artificial intelligence,and "Fuxing" have emerged one after another,resulting in extreme economic and social development.Technological innovation is the main driving force for the development of national economy and technology,and R&D investment is an important way to develop technological innovation.However,despite the rapid increase in R&D expenditures in recent years in China,compared with the developed countries in the world,the R&D investment of Chinese companies is low.Financing constraints are the main reason for the lack of R&D investment in enterprises.This paper studies the effect of financing constraints on R&D investment,and studies the mitigation effect of financing constraints on the perspective of government subsidies.This is of great significance to increasing R&D investment in China’s high-tech enterprises,intensifying efforts to develop technological innovations,and making them play a greater role in the main battlefield of the national economy.When companies invest in R&D,due to information asymmetry and agency costs,it is difficult for companies to obtain financing from external sources,that is,they face financing constraints.At the same time,the degree of dependence of the company on internal funds has deepened,and the use of limited funds has been used to carefully select investments to form investment-cash flow sensibility.This theory is used to examine the financing constraints of companies.In order to reasonably measure the degree of financing constraints,summarize the previous literature,select appropriate variables and use Logistic regression to construct a multi-index financing constraint index(FCI).This article selects high-tech listed companies in Shanghai and Shenzhen in 2013-2016 as samples,screening non-abnormal indicator data,using multiple linear regression model to study whether the company is facing financial constraints,the test results show that the company’s internal cash flow and R&D investment are positive The correlation shows that the investment-cash flow sensitivity is significant,that is,China’s high-tech listed companies generally face financing constraints.After examining the effects of financing constraints on R&D investment and the easing effect of government subsidies on financing constraints,it was found that financing constraints are negatively correlated with R&D investment.Government subsidies are positively correlated with R&D investment and will reduce the negative impact of financing constraints on R&D investment.Therefore,the conclusions are: Financing constraints hinder China’s high-tech listed companies from investing in R&D,and government subsidies can ease the financing constraints.Based on the theoretical analysis and empirical test results,this paper proposes to increase the R&D investment of the enterprise from two aspects of the enterprise and the government,and to alleviate the financing constraints.For enterprises,they can improve the credit system,enhance information disclosure and improve cash flow management,and establish cash reserves.The government can increase policy support and increase government subsidies.At the same time,it will establish a financing system that matches the high-tech industry and expand the financing channels.