Research On Influence Of Capital Structure On R&D Investment In Case Of Company AW

Under the background of economic globalization,Chinese enterprises and industries face the dual challenges of domestic competition internationalization and international competition domestically.And how to gain competitive advantage by improving the technological innovation level has become an important problem for Chinese enterprises.R&D investment is an important guarantee for enterprises to acquire technological innovation ability,and also the basis for long-term development of enterprises.There are many factors affecting R&D investment,and as an important investment decision,R&D investment will be greatly influenced by the capital structure.As an important innovation economy in China,Communication equipment manufacturing industry has made a position that can not be ignored in international competition,and the realization of this competitive position and catching up target depends on the improvement of the overall innovation ability of the innovation ecosystem,including HUAWEI and other industry giants.As a member of this ecosystem,AW enterprise is at a medium level in the communications equipment manufacturing industry in China,but at present,there is still a problem of insufficient R&D investment and weak innovation ability.Therefore,this paper takes AW enterprise as the research object.Through theoretical research and practical cases,from the perspective of capital structure,to explores AW company's insufficient R&D investment and weak innovation capability.And then by improving the enterprise's capital structure to improve its R&D investment and enterprise innovation ability,enhance the corecompetitiveness of the enterprise,and ultimately improve the value of the enterprise.This paper is based on the review of the capital structure theory and the related literature,according to AW company's open financial statements from 2008 to 2016,combined with data from the communications equipment industry,to analyze the problems of AW company in R&D investment from the perspective of capital structure.The study found that: First,the level of the enterprise's asset and liability ratio is low,the debt structure has a high ratio of current liabilities,and the more dispersed ownership structure are the reason for the capital constraint of enterprise R&D investment.Second,we analyze the impact of capital structure on R&D investment from aspects of asset liability ratio,debt structure and equity capital ratio,find that R&D funds are dependent on internal capital and equity financing.Third,on the problem of improving the current R&D level of the enterprise,this paper predicts the reasonable R&D intensity of the enterprise in the next year through the method of the evaluation of the results and the basic model determined by the reasonable R&D intensity,and according to this,we propose a capital structure adjustment plan design to meet funds needed for rational R&D investment intensity.Finally,we put forward some countermeasures and suggestions on optimizing the capital structure of the enterprise to improve the level of R&D investment.The results and suggestions of this paper can provide some references for the related industries and enterprises in the innovation oriented investment and financing decision-making.