Research On The Influence Of Financing Constraints And Internal Control On R&D Investment

In the context of the knowledge economy era,the competitive advantage among enterprises has changed from a "resource comparative advantage type" to an "innovative element advantage type".R&D and innovation have become the fundamental driving force for economic development.The recent ZTE incident and the development of China’s 5G industry,represented by Huawei,have proved the importance of technological innovation to enterprises and the country,and the improvement of innovation capabilities basically depends on the amount of investment in research and development activities.According to the data disclosed,the total investment in China’s R&D activities in 2018 was 1967.79 billion yuan,a record high,and the intensity of R&D investment exceeded 2% for 6 consecutive years.However,in terms of R&D investment intensity,there is still a certain gap with the world’s technology powerhouses,such as 2.79% in the United States and 3.21% in Japan.The high financing cost of innovative activities is the main reason leading to the current status of China,which is also relevant in theory.Research to prove it.Therefore,in the current social context,it is particularly important to explore the relationship between corporate financing constraints and R & D investment.It is even more critical to explore solutions to corporate R&D financing constraints.In the past,the literature is more about how to alleviate the R&D financing constraints facing enterprises from the perspective of external financial and political environment.Few literatures use internal control as an entry point to investigate.Starting from the inside of the enterprise,exploring how internal control can alleviate the R&D financing constraints currently facing the enterprise has both micro-practical value and enriching existing theories.Based on financing priority theory,information asymmetry theory,and principal-agent theory,the research builds a theoretical framework between internal control,financing constraints,and R&D investment,and standardizes the deduction of financing constraints on R&D.The mechanism of input and the mitigation effect of internal control on R&D financing constraints.Secondly,the panel data of 1,521 listed companies in Shanghai and Shenzhen A-shares from 2013 to 2018 was used as the research sample.A sorting logistic regression was used to construct a financing constraint index to measure the degree of financing constraints.A fixed-effects model was used to perform multiple regression on the sample to verify financing The impact of constraints on R&D investment and the moderating effect of internal control on both.At the same time,it further verified the impact of the nature of property rights and the differences in firm size on the regulatory effects of internal control.The main conclusions of the study are as follows:(1)Financing constraints inhibit R&D investment;(2)Internal control can suppress the negative impact of financing constraints on R & D investment,that is,there is a negative regulatory effect on internal control.(3)Compared with state-owned enterprises,the negative regulation effect of internal control in private enterprises is more significant.(4)Compared with large-scale enterprises,the negative regulatory effect of internal control in small-scale enterprises is more significant.The research innovation is to clarify the mechanism of financing constraints and R & D investment,and to further explore the transmission of internal control between the two.At the same time,on this basis,it examines the impact of differences in property rights and differences in scale on the regulatory effect,especially to provide data support for SMEs and private enterprises with insufficient internal control to strengthen internal control.It has enriched the research on the microeconomic consequences of internal control,and provided references and references for companies caught in R & D financing difficulties.