Abstract
R&D investment is the source of technological innovation of pharmaceutical enterprises, but it will be restricted by the funding level, especially in the context of major public health emergencies occurring more frequently, therefore exploring the impact of monetary policy uncertainty on the R&D investment smoothing behavior of pharmaceutical manufacturing enterprises has important theoretical and practical value. Based on the relevant data of Chinese pharmaceutical manufacturing enterprises from 2012 to 2018, this paper studies the impact of monetary policy uncertainty on R&D investment smoothing behavior of pharmaceutical enterprises, and investigates whether there is a threshold effect. First, our results demonstrate that the empirical test results of this article support the hypothesis of R&D investment smoothing behavior of pharmaceutical manufacturing enterprises. Second, there is a negative correlation between monetary policy uncertainty and R&D investment smoothing behavior, and the shorter the period is, the higher the financing constraints of pharmaceutical enterprises are, and the more obvious the negative correlation is. Third, financing constraints have a single threshold effect on the R&D investment smoothing behavior of pharmaceutical manufacturing enterprises, with a threshold of −13.7693. Moreover, this conclusion can better promote the virtuous circle of the real economy of financial and pharmaceutical manufacturing enterprises. It is recommended that pharmaceutical manufacturing enterprises establish and improve the enterprise R&D reserve system, reduce the risk of R&D investment, play the role of R&D smoothing, and realize the sustainable development of enterprise R&D.
Highlights
Introduction published maps and institutional affilWith the accelerating process of globalization and the evolution and development of society, major public health emergencies occur more frequently, which has a great impact on people’s lives and economic development, and it has a strong stimulus to the development of the pharmaceutical industry
Investment opportunities and reduces their willingness to innovate in R&D [36], which in turn weakens the motivation for R&D investment smoothing behavior
In order to further study the impact of monetary policy uncertainty on the smoothing behavior of R&D investment of pharmaceutical manufacturers, the variables of monetary policy uncertainty were added to Equation (3) to test, and the following model was established: αi + β 1 RDi,t − 1 + β 2 RD2i,t + β 3 4 Cashi,t + β 4 Ui,t ×4 Cashi,t + β 5 Ui,t
Summary
Bloom et al [14] recognized that the imperfections of the capital market will have an impact on R&D investment decisions, which will result in the dynamic volatility of. The uncertainty of monetary policy increases the risk expectations of enterprise capital interruption and strengthens the motivation of enterprise R&D investment smoothing behavior. Monetary policy uncertainty increases the difficulty for firms to grasp R&D investment opportunities and reduces their willingness to innovate in R&D [36], which in turn weakens the motivation for R&D investment smoothing behavior. Frequent adjustments in monetary policy make it difficult for enterprises to judge investment opportunities based on the net present value of investments This impact will be more obvious in innovative activities with long cycles and high uncertainties. Behavioral finance theory believes that uncertainty tends to shape management’s pessimistic expectations, and management is worried about future financial difficulties This sentimental effect will make management decision-making tend to be conservative and reduce investment, especially R&D investment with high-risk characteristics [39].
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