Technological Innovation, R&D Investment, R&D Capability And Corporate Financing Costs

With the trend of economic globalization,Sino-US trade frictions have become more and more intense.Based on the warning from "ZTE Event" and "Huawei Event",we have realized the importance of scientific and technological innovation more deeply.Enterprises should strengthen scientific and technological innovation,increase R&D investment,and enhance R&D capability.All of these cannot be separated from the support of funds.In addition to the enterprise’s own funds,external financing is also indispensable.However,because of their own development characteristics,scientific and technological enterprises often face difficulties in financing and high financing costs.Therefore,we should study the relationship between scientific and technological innovation,R&D investment,R&D capability and enterprise’s financing cost,and explore how to reduce the financing cost of scientific and technological enterprises.That is a very important and urgent issue.Taking "ZTE Event" and "Huawei Event" as the entry point,this paper elaborates the research background.By reviewing and comparing the two events,the significance of this study is drawn.At the same time,this paper organizes the relevant literatures and clarifies the research contents,methods and innovative points.This paper uses the method of literature research.By reading and studying a large number of relevant literatures about enterprise financing and scientific and technological enterprises,first of all,it introduces the basic concepts and the related theories of financing,including traditional financing theories and modern financing theories.Traditional financing theories consist of Net Income Theory,Net Operating Income Theory and Traditional Compromise Theory.Modigliani Miller Theory,revised Modigliani Miller Theory,Miller model,Trade-off Theory,Agency Cost Theory,Signalling Theory,Pecking Order Theory,Control Right Theory and Financial Growth Cycle Theory constitute modern financing theories.Meanwhile,the measurement methods of equity financing cost and debt financing cost are elaborated respectively.Among them,the measurement methods of equity financing cost include CAPM model,FFM model,APT model,GGM model,GLS model,PEG model,MPEG model,AGR model and OJM model.The measurement methods of debt financing cost include credit rating method,absolute number method and relative number method.Secondly,this paper expounds the basic concepts and characteristics of scientific and technological enterprises,and focuses on the status quo of equity and debt financing of scientific and technological enterprises in China.In the current situation of equity financing,it introduces the four major equity financing ways respectively: investment fund,National Equities Exchange and Quotations,China Growth Enterprise Market and SSE STAR Market.In the current situation of debt financing,this paper also introduces three types of loans.Technology micro-credit loan,technology performance loan and technology giant-credit loan are three kinds of loans for scientific and technological enterprises in different growth stages.Thirdly,on the basis of the previous paper,this paper chooses the appropriate measurement methods of equity and debt financing cost.Three explanatory variables are whether scientific and technological enterprises,R&D investment and R&D capability.Six control variables are relevant indicators about attribute of actual controller,type of audit opinion in audit report,solvency,main business,profitability and capital structure.Using empirical analysis method,this paper constructs relevant models,and collects relevant data from the website of National Statistical Bureau,Shanghai Stock Exchange,Shenzhen Stock Exchange and WIND database.This paper uses EXCEL and STATA 15.0 to process data,conduct relevant tests and regression analyses.The purpose is to study the relationship between scientific and technological innovation,R&D investment,R&D capability and the cost of enterprise’s equity and debt financing.Finally,according to the empirical research,we draw the following conclusions: 1.The cost of equity financing of scientific and technological enterprise is generally higher than that of non-scientific and technological enterprise;2.The increase in R&D investment of enterprise can reduce the cost of equity financing;3.The improvement in R&D capability of enterprise can reduce the cost of debt financing.On this basis,this paper puts forward four suggestions on financing of scientific and technological enterprises in China: “Expanding the scope of tax incentives for scientific and technological enterprises”,“Enriching the loan varieties of scientific and technological enterprises and improving the financing mechanism of intellectual property pledge”,“Establishing special bonds for scientific and technological enterprises”,“Perfecting the system construction of SSE STAR Market and establishing related preferential policies”.