Research On The Impact Of Diversification On R&D Investment

Diversification is a kind of business management strategy that enterprises are keen on at present.It is mainly a business strategy adopted by enterprises in order to expand the market and the industry.In today’s era of rapid development of science and technology,the importance of knowledge and technology have become increasingly prominent.The case of ZTE before,then Huawei was sanctioned by the United States,and the increasing impact of science and technology on our lives all remind us of the importance of scientific research and innovation.R&D investment can directly affect the output of scientific research innovation,research and development ability of enterprise is becoming influences enterprise’s core competitiveness and maintain long-term stable development of the important factors,the country’s research and development ability is also a key to affect the international status of science and technology of a country,therefore,the research and development innovation ability of ascension has dual attention by the state and enterprises.Diversification and R&D investment are both development strategies of an enterprise.One is to enlarge the scope of the enterprise horizontally,and the other is to strengthen the depth of the enterprise vertically.Diversification and R&D investment,as two development strategies of enterprises,are of great significance to the development of enterprises.It is of great practical significance to study the influence of enterprise diversification on R&D investment for Chinese enterprises to rationally diversify their operations and promote R&D investment.This paper selects A-share listed manufacturing companies from 2010 to 2019 as data samples to analyze the impact of corporate diversification on corporate R&D investment.First of all,read relevant literatures at home and abroad,and summarize the research content and significance of the article.Secondly,based on the theoretical basis,the hypothesis of this paper is put forward.Based on the "Industry Classification Guidelines for Listed Companies" as the standard,the enterprise diversification is classified,and the diversification is divided into related diversification and non-related diversification.On the basis of the research in this paper,the effect of corporate diversification on the R&D investment,a Finally,financing constraints are added as intermediary variables to study the impact mechanism of diversification on R & D investment.according to the result of regression analysis accordingly,the final conclusion and gives relevant policy recommendations.The results show that(1)Taking China’s A-share listed manufacturing companies as the sample,the choice of diversified operation strategy has an inhibiting effect on the R&D investment activities of enterprises.Compared with the single business enterprises,diversified operation will disperse the core resources,which is not conducive to the R&D investment activities of enterprises.(2)Related diversification promotes R&D investment,while unrelated diversification restrains R&D investment,because the correlation degree of unrelated diversification is weaker than related diversification,the cost of entering new business is higher,and the ability of sharing core business resources is weaker.(3)Diversification will aggravate the financing constraints of enterprises,and the financing constraints inhibit the R&D investment of enterprises.The higher the degree of financing constraints,the stronger the inhibition.Diversification can suppress the R&D investment of enterprises by increasing the financing constraints.According to the empirical results and research conclusions of this paper,the policy recommendations for enterprises and the government are as follows:enterprises need to correctly understand their own capabilities,reasonably evaluate whether they can carry out diversified operation,and appropriately carry out diversified operation;In the implementation of the diversification strategy,it is necessary to focus on related diversification and make full use of the advantages of resources brought by the correlation degree among diversified industries.On the premise of establishing and improving the legal guarantee system,the government can reasonably formulate relevant policies and stablish and improve the financial market system to stimulate enterprises’ R&D investment and alleviate the inhibiting effect of enterprise diversification on R&D investment.