Research On The Impact Of R & D Investment On The Cost Of Equity Capital

Innovation is not only the source of national economic development,but also the motive force of long-term development of enterprises.R&D capability is an important factor to measure the innovation capability of enterprises,and it plays an irreplaceable role in maintaining the vitality of enterprises.In recent years,Chinese enterprises have paid more and more attention to scientific and technological innovation,increased investment in R&D funds,and vigorously promoted the implementation of innovative scientific research projects.R&D investment can provide a strong guarantee for the profits of enterprises,and thus can drive the realization of the expected return rate of shareholders.Considering the value of R&D investment from the perspective of equity capital cost is helpful for enterprises to examine their business activities from the perspective of long-term development and make a reasonable evaluation of capital cost,improve investment and financing strategies,so as to attract more investors and obtain stable and sufficient funds.Accordingly,this paper makes a tentative study on the relationship between R&D investment and equity capital cost.Based on the analysis of the current situation of R&D investment and equity capital cost of listed companies,this paper explores the impact mechanism of R&D investment on equity capital cost of listed companies through correlation analysis and regression model,and from three aspects: high-tech industry,construction industry and manufacturing industry.This mechanism is compared and analyzed among different industries.The outcome indicate that:(1)There is a remarkable contrary relevance between R&D investment and equity capital cost of Listed Companies in China,and this relationship has obvious lag.(2)There are differences in the impact of R&D investment on the cost of equity capital in three different industries.Among them,the impact is significant in the high-tech industry,but the construction industry and manufacturing industry have not shown.(3)The impact mechanism of R&D investment on equity capital cost in three different industries has lagging effect.For high-tech and construction enterprises,the R&D intensity coefficients of the three lag periods are significant.For manufacturing enterprises,the third period after R&D investment is negatively correlated with the cost of equity capital.Based on the conclusions of the study,this paper puts forward some suggestions: when making capital structure optimization decisions,listed companies in China should consider the important factor of R&D investment,and evaluate and select projects according to the value creation ability of different capital investment.In addition,enterprises should pay more attention to R&D activities,strengthen R&D management and planning,increase R&D information disclosure and reduce risks.When investing in R&D,industry differentiation management should be implemented.The government should improve the relevant policies to provide guarantee for the R&D of enterprises.