Research On The Impact Of Corporate Financial Asset Allocation On Its R&D Investment

In recent years,China’s real economy is weak,and the profitability is declining,resulting in more and more enterprises to invest in the financial and real estate market.Moderate investment can bring into play the reservoir effect of capital and restrict enterprises to obtain external financing.However,when financial assets are allocated too much,it will lead to insufficient investment in R&D;which will undoubtedly hinder enterprises’ R &D innovation ability.From the current situation of China’s economic development,the "cold" of the real economy and the "hot" of the virtual economy are the main characteristics at this stage.Under the background of economic liberalization and economic globalization,the separation of virtual economy and real economy has become one of the most obvious structural contradictions.China is in an important period of strategic opportunities for economic transformation.In the new era,Chinese enterprises are also changing from the traditional profit-seeking model to the innovation model,which is the key for China to become a powerful country in science and technology as soon as possible.The implementation oriented development strategy will help China to form new advantages in international competition and enhance long-term and stable development momentum.Therefore,it is of great practical significance to explore the relationship between financial asset allocation and R&D investment of non-financial enterprises in China.In this paper,first of all,the relevant domestic and foreign literature on enterprise financialization and enterprise innovation is combed.Then,based on the information asymmetry theory and the priority financing theory,the hypothesis is proposed and the model is constructed.At the same time,the financial data released by A-share listed companies in Shanghai and Shenzhen from 2012 to 2018 is used as the benchmark to confirm the R&D investment of enterprise financial asset allocation The influence of capital intensity.In the empirical part,descriptive statistics,correlation analysis and endogenous test are carried out for,the paper empirically tests the impact of financial asset allocation on R&D investment.The empirical results show that: 1.For non-financial enterprises,the allocation of financial assets will significantly inhibit the R&D investment activities,that is,the more financial assetsenterprises allocate,the more obvious the crowding of R&D funds.On the one hand,it will directly occupy R&D funds;on the other hand,too much allocation of financial assets will affect the financial stability of enterprises,which is not conducive to the development of R&D activities.2.Financing constraints will aggravate the inhibition effect of financial asset allocation on R&D investment,that is,the more serious the financing constraints are,the less R&D capital the enterprise allocates.When facing serious financing constraints,enterprises will give up some R&D projects to maintain the company’s operation under the pressure of capital.3.Government subsidies can significantly inhibit the crowding out effect of financial asset allocation on R&D innovation.The government can improve the capital situation of enterprises through direct subsidy and tax deduction,significantly alleviate the financing constraints.With the endorsement of the government,enterprises can more easily obtain bank loan support,and enterprises have enough funds for R&D and innovation activities.