Abstract
Taking listed companies of strategic emerging industries as the research subject, this paper uses KZ index to measure the degrees of financing constraints and financial intermediary as well as the stock market to represent the level of financial development. Then empirical models are constructed to analyse whether financial development can alleviate the financing constraints of R&D investment or not. Finally, the paper further investigates the interaction of financial development and firm characteristics (including firm size, ownership nature and establishment time) on the impact of R&D investment. The results show that the degree of financing constraint is negatively correlated with R&D investment. Both the development of financial intermediary and stock market play an important role in alleviating the R&D financing constraints, and the development of the stock market can better alleviate the R&D financing constraint. Moreover, the development of financial intermediary and stock market plays a heterogeneous role among enterprises of different size, nature and time of establishment. In order to achieve the 13th Five-year Plan target of strategic emerging industries in China, the government and enterprises need to work together to improve the financial development level and reduce information asymmetry, so as to expand the investment channels of R&D investment and improve their innovation capability and competitiveness.
Highlights
Strategic emerging industries are currently the key industries to be cultivated in China
Financial intermediary development plays a more significant role in alleviating financing constraints of R&D investment of short-established enterprises compared to long-established enterprises, while the role of stock market development is not obvious
The main conclusions are as follows: (1) The degree of financing constraints faced by enterprises of strategic emerging industries has increased during 2010–2018
Summary
Strategic emerging industries are currently the key industries to be cultivated in China. In order to achieve the target put forward in the 13th Five-year Plan of China and enhance. Journal of Business Economics and Management, 2020, 21(4): 1010–1034 the endogenous power of the development of strategic emerging industries, it is necessary to enhance the innovation ability. R&D investment is the fundamental way to improve the innovation ability of strategic emerging industries, and it is of strategic significance to transform the pattern of economic development and enhance industrial competitiveness. R&D investment mainly comes from internal fund and external financing. In the case of information asymmetry, external fund providers are at an information disadvantage and face high risks, so they require high returns. The cost of external financing is much higher than that of internal financing, which leads to financing constraints on R&D investment
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