An Study Of The Effects Of Corporate Financing Structure On Innovation Investment

After the global financial crisis,the global economic center has moved eastward and China has become an important growth pole in the world economy.However,the economic benefits of our enterprises are relatively low,which is mainly related to the lack of innovative investment in enterprises.innovative financing is to ensure that enterprises continued the basic guarantee of innovation.Therefore,studying the impact of corporate financing structure on innovation investment is conducive to improving the financing environment for corporate innovation investment,promoting the management of corporate financing structure and corporate governance system innovation,and achieving corporate innovation to promote China's economic innovation-driven development.This paper divides the corporate financing structure into internal financing and external financing.And further divides external financing into equity financing,debt financing and government subsidies.Then,relaxing the hypothesis of Tobin's q,introducing a marginal cost variable for financing,the intrinsic relationship between financing and innovative investment was deduced theoretically.Once again based on the q equation model of investment,this paper uses the unbalanced panel data from 2007 to 2016 of listed companies in China's SSE A-share manufacturing industry to make a dynamic regression analysis of the relationship between innovation input and financing structure using the system-GMM empirical model.Finally,the paper discusses how to improve the structure of corporate finance and how the government can formulate encouragement policies.The findings are as follows:(1)Both internal financing and external financing are important financing channels for enterprise innovation investment.However,the external financing contributes more than internal financing.(2)Equity financing plays a most significant positive role in promoting corporate innovation inputs,followed by government subsidies.debt does not contribute much to corporate innovation investment.(3)When we add the items of the fluctuation of equity financing and the items of other financing in the regression model,we find that the volatility of equity financing has a significant negative effect on the innovation investment of enterprises.In addition,the cross term of equity financing volatility and internal financing is significantly positive,which shows that the internal financing of enterprises plays a good role in smoothing the volatility of the input of buffer innovation.