Research On The Impact Of Related Party Transactions On Enterprises' Innovation Investment

Due to the increasing number of related-party transactions between enterprises,innovation plays a vital role in China's comprehensive deepening of reform and development.By analyzing the current large number of related party transaction cases,it is not difficult to find that if related companies have related party transactions,their innovation investment will also fluctuate accordingly,which has caused widespread concern in the industry and academia.This article takes Zixin Pharmaceutical as an example,and finds that during the period of large-scale related party transactions,development expenditure also changes.As the saying goes: "Near Zhu Zhuchi,near Mozi Black",connected transactions as the main way for companies to communicate with the outside world,what impact it will have on corporate innovation investment is worth thinking about.The construction of innovative enterprises,as one of the core leading contents of establishing an innovative country,has the responsibility to become the key subject of innovation development.In order to more effectively promote the innovative behavior of enterprises and implement the national innovation policy,this article analyzes in detail the different factors of connected transactions for corporate innovation Impact mechanism and path of investment.This article examines the economic consequences of corporate related party transactions at first,and then considers the influencing factors of Chinese listed companies' technological innovation investment.These two aspects are explored in depth to find out whether there is an internal relationship between the two.Then,the related party transactions are divided into five dimensions for evaluation,namely whether the size,type,object,concentration,and price of related party transactions are fair,and the impact of these aspects on the company's innovation investment will be examined separately..This article comprehensively considers the theoretical basis and whether the relevant data can be obtained intuitively when selecting specific indicators to measure each factor,then conducts empirical research based on the obtained data and finally draws conclusions.To this end,this article uses the unbalanced panel data of China's listed companies from 2007 to 2017 as a sample.First,five regression variables and the explained variables are tested by regression.In the regression process,firstly,they are fixed and modeled randomly.The effect test and mixed regression are used to perform regressiontests,and then the F test and LM test are used to determine whether they can use mixed regression.The results obtained are not suitable for the mixed regression model in this paper.It should specifically use a fixed-effect model or a random-effect model,analyze the obtained results,and obtain regression results for each of the five models.Finally,use the robustness test to verify whether the results are reasonable.The research finds that the effect of the related party transactions on the innovation input of enterprises is studied from different perspectives,and the results obtained are different.Some factors will promote the innovation input of the enterprise but some factors will hinder it.There is a significant negative correlation between the scale of enterprise related party transactions and the intensity of its innovation input;the type of related party transaction belongs to commodity transactions,and the company's innovation input may change in the opposite direction;if the objects of enterprise related party transactions are under the same control Related party transactions will also have a significant negative effect on innovation input;on the contrary,the concentration of related party transactions will have a significant positive effect on its innovation input.The higher the concentration of related party transactions,the more its innovation investment will follow.At the same time,the fairness of the related party transaction price will also have a positive effect on its innovation input.The higher the fairness of the related party transaction price,the more it will promote its innovation input.Based on the analysis of the empirical results and conclusions,this paper proposes relevant policy recommendations for regulating related party transaction behaviors so that they can increase the company's innovation investment and thus promote its innovation ability.Finally,the limitations of this research are briefly explained,Think about the shortcomings of this article,and make prospects for subsequent research.