The Impact Of Financial Development On R&D Investment Of Enterprises

President Xi Jinping pointed out that China's economy has changed from a high speed growth stage to a high quality development stage in the 19 th national congress.At present,innovation has become the core driving force for social development and also an significant strategy for building a modernized economic system.As the main part of innovation,the R&D activities of enterprises are the power sources of China's development from "made in China" to "created in China".In recent years,China has increased the investment in various R&D activities,but compared with developed countries,China's overall innovation ability is relatively weak,and the R&D investment of enterprises is still insufficient.How to improve the innovation ability of enterprises in the "new normal" period,and then promote the vigorous development of social economy has become an unavoidable hot issue.At present,the main reason for the lack of innovation ability of Chinese enterprises is that their R&D activities are facing serious financing constraint.On the one hand,R&D activities are characterized by large amount of funds,long return period,high uncertainty and lacking of corresponding collateral,which make external financing relatively difficult;on the other hand,the high confidentiality of R&D activities causes serious information asymmetry between enterprises and market investors,which ultimately leads to the external capital cost far higher than the internal capital cost.Based on the above reasons,it has become an urgent issue to explore whether the development of finance can broaden the channels for enterprises to obtain funds,increase the supply of external funds by market investors,and then ease the financing constraint faced by R&D activities.This paper discusses the financial development,financing constraint and R&D investment from the theoretical and empirical perspectives.It mainly analyzes the impact of financial development on R&D investment from the perspective of financing constraint,and then discusses the enterprises with different property rights.Based on the panel data of China's listed companies from 2012 to 2018,this paperuses multiple linear regression model to test whether there is financing constraint in R&D activities,the impact of financial development on the above issue,and whether the impact will be different due to the different nature of property rights.It is found that:(1)financing constraint is common in R&D activities of listed companies in China;(2)financial development can alleviate the financing constraint of enterprises and promote the R&D activities no matter from the perspective of scale or efficiency;(3)enterprises of different ownership nature face different financing constraint,and the problem in non-state-owned enterprises is more serious than state-owned enterprises,(4)compared with state-owned enterprises,the financing constraint of non-state-owned enterprises has been alleviated more obviously with the gradual development of finance.This paper has a certain theoretical and practical significance for increasing R&D investment of enterprises and improving China's financial system,also provides empirical evidence for understanding the micro mechanism between financial development and economic growth.