Research On Optimization Of ZTE’s Internal And External Financing From The Perspective Of R&D Assistance

In the era of innovation,innovation is the first driving force for development.In order to improve the national innovation system and speed up the creation of an innovative power,it is necessary to improve the R&D intensity of enterprises,in which financing is the most basic influencing factor of R&D investment.Therefore,this paper studies the optimization of internal and external financing that is beneficial to R&D investment of enterprises in view of the existing problems in financing.In order to show that optimized financing can improve R&D capability,it is necessary to first clarify the sources of R&D investment funds of enterprises and the influence of different financing on R&D investment capability.Firstly,through the empirical analysis of communication equipment industry,this paper shows that enterprises in the industry need internal and external financing for R&D investment.Enterprises mainly rely on equity financing to invest in R&D;Internal financing has the most significant effect on R&D intensity,followed by equity,and creditor’s rights inhibit R&D investment.Then,the financial data of ZTE from 2011 to 2020 are analyzed.Firstly,the research and development status of enterprises is expounded.Secondly,through the empirical analysis results and literature supplement,the sources of R&D investment funds lead to internal and external financing,sort out the current situation of internal and external financing,and analyze the specific impact of each financing on R&D investment according to the empirical analysis results;Then,it analyzes the problems of internal and external financing that are not conducive to R&D: First,internal financing plays a great role in enhancing R&D intensity,but the accumulation ability of internal financing is insufficient;Second,debt financing inhibits R&D investment,but the external debt financing of enterprises is on the high side,and too much short-term debt does not match R&D investment;Third,equity financing is the most dependent source of funds for enterprise R&D investment.However,ZTE’s largest shareholder has reduced its holdings,and equity financing accounts for a low proportion of total assets.Then,the causes of financing problems are studied: their own accumulation ability is not strong;Great external environmental impact;Many factors lead to more debt financing;Financing channels are not rich,and long-term bond financing has not been applied for;Lack of equity utilization ability,etc.Finally,the paper puts forward the optimization suggestions of internal and external financing to help R&D: First,strengthen the accumulation of internal funds;The second is to reduce creditor’s rights and control risks;Develop long-term bond financing adaptation research and development,and control the lowest financing cost through multiple financing channels;Perfecting the financing decision-making mechanism and matching the budget system to make efficient use of funds;The third is to improve the major shareholders with stable performance,improve external equity financing,and enhance R&D capabilities.The main contribution of this paper lies in,on the one hand,supplementing the case study contents of endogenous financing,exogenous equity financing and debt financing optimization to help R&D;On the other hand,it brings some reference significance for similar case enterprises in the communication equipment industry on how to optimize financing and promote R&D.