This paper studies the influence of government subsidies and financing\nstructure on corporate R&D investments by using the empirical data of Chinese\nenterprises listed in SME board. The study finds that: 1) Internal financing\nhas the greatest effect on R&D investments, followed by debt financing\nand equity financing. 2) Both government subsidies and corporate financing\ncan significantly influence corporate R&D investments. 3) Government\nsubsidies have a significant moderating effect on the relationship between\ncorporate financing and R&D investments, that is, the more government\nsubsidies the small and medium-sized enterprises receive, the more\nwilling they are to invest funds from other financing channels into R&D activities.\nIn the further sample test, it is also find that government subsidies\nhave a greater effect on the promotion of R&D investments in non-state-owned\nenterprises than in state-owned enterprises.
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