Research On The Influence Path Of Government Subsidy On Enterprise R&D Investment

From the report of the 18 th National Congress of the Communist Party of China to the implementation of the innovation-driven development strategy,to the report of the 20 th National Congress of the Communist Party of China pointed out that we should stimulate the vitality of innovation,"strengthen the enterprise-led deep integration of industry,university and research,strengthen the goal-oriented,and improve the transformation and industrialization of scientific and technological achievements." Innovation is very important to our overall economic development.Enterprises are the main body of innovation,and the improvement of their innovation level is the key path to implement the strategy of innovation-driven development.Enterprise R&D investment is a key indicator to measure the level of innovation.However,the enterprise innovation behavior with R&D investment as the core has externality.In addition,Chinese enterprises generally have insufficient R&D resources and weak R&D willingness,so the enterprise innovation activities should rely on the help of government subsidies.At present,all countries in the world attach great importance to innovation and give large amounts of subsidies to enterprises’ R&D investment and other innovative behaviors.Then,in the environment of innovation-driven development,it is of great theoretical and practical significance to study whether the government subsidy can stimulate the enterprise R&D investment,namely by increasing the enterprise R&D resources and improving the enterprise R&D willingness,so as to better improve the enterprise innovation level.Based on the above analysis,this paper takes the data of Chinese A-share listed companies from 2009 to 2021 as samples to study the impact of government subsidies on enterprise R&D input.From the perspectives of R&D resources and R&D willingness,this paper explores the mediating effect of financial mismatch and enterprise risk taking.In addition,from the perspectives of external supervision and internal incentive,The moderating effect of audit by top ten accounting firms and executive compensation level in this process is verified respectively.The empirical results show that:(1)Government subsidies can significantly improve the level of enterprise R&D investment;(2)From the perspective of R&D resources,government subsidies can promote enterprises to increase R&D investment by reducing financial mismatch;(3)From the perspective of R&D willingness,government subsidies can promote enterprises to increase R&D investment by improving their risk bearing capacity;(4)From the perspective of external supervision,in the enterprises audited by the top ten accounting firms,government subsidies have a significant role in promoting R&D investment;(5)From the perspective of internal incentives,executive compensation higher than the industry average does not promote the positive impact of government subsidies on R&D input,but the executive compensation no higher than the industry average will promote the positive impact.Starting from macroeconomic policies,this paper discusses the impact of government subsidies on enterprises’ R&D input.Firstly,it enriches the research literature related to government subsidies and enterprises’ R&D input.Secondly,it discusses the mediating effect of financial mismatch and firm risk-taking,and clarifies the mechanism of government subsidies on firm R&D investment.Finally,the regulation effect of external supervision and internal incentive is verified,which provides reference for the government to improve the policy of subsidizing and enterprises to further improve the level of R&D innovation.