The technological innovation, financing and growth of listed companies

Abstract

Abstract: The financing selections of listed companies in innovation projects may be clearly different from other projects due to the former's larger risk, and these financing selections may be reflected in leverage. In addition, the relation between leverage and growth may affected by investment opportunity signal produced by technological innovation. By selecting randomly 592 Listed Companies on the basis of industries composition in China as samples and ten years from 2001 to 2010 as testing period, this paper divides the period into two sub-periods by 2007 since accounting regulations greatly changed this year, and then test how technological innovation affect financing, and how leverage affect growth on the condition of different technological innovation levels. The results show that stronger firms in technological innovation are more likely to increase newly retained earnings, and their leverage is lower. But the evidence about the effect of technological innovation on relation between leverage and growth cannot be found.

Key words: technological innovation, financing, growth

CLC Number:

G306.3

Chen Kunyu. The technological innovation, financing and growth of listed companies[J]. Science Research Management, 2015, 36(3): 64-70.

References

[1] Rossi S. Patents, capital structure and the demand for corporate securities [J/OL].Working paper, www.ssrn.com, 2005, 9: 1-61. [2] Myers SC, Majluf NS. Corporate financing and investment decisions when firms have information the investors do not have [J], Journal of Financial Economics 1984, 13: 187-221. [3] 波特. 竞争优势 [M]. 北京:华夏出版社,1997: 175-178.Michael EP, Competitive advantage [M], Beijing:Huaxia Press, 1997: 175-178. [4] Myers SC. Determinants of corporate borrowing [J]. Journal of Financial Economics, 1977, 5: 147-175. [5] Malkiel BG. A random walk down wall street [M], W. W. New York: Norton, 2003. [6] Jensen MC. The modern industrial revolution, exit and the failure of internal control systems [J]. Journal of Finance, 1993, 48: 831-880. [7] Miller M. Leverage [J]. Journal of Finance, 1991, 46: 479-488. [8] Jensen MC. Agency costs of free cash flow, corporate finance and the market for takeovers [J]. American Economic Review, 1986, 76: 323-329. [9] Stulz RM. Managerial discretion and optimal finance policies [J]. Journal of Financial Economics,1990, 26: 3-28. [10] Lang L, Ofek E, Stulz R. Leverage, investment and firm growth [J]. Journal of Financial Economics, 1996, 40: 3-29. [11] Trajtenberg M. Product innovations, price indices and the measurement of economic performance [J/OL]. NBER Working paper, 1990, no. 3261: 1-34. [12] Anneloes JF, Hesen B. Innovation capabilities of furopean nations: cross-national analyses of patents and lnsales of product innovations [J]. Research Policy, 2004, 33: 193-207. [13] 李平,崔喜君,刘建. 中国自主创新中研发资本投入产出绩效分析 [J]. 中国社会科学,2006(2):32-42.Li Ping, Cui Xijun, Liu Jian. The analysis on performance of R&D investment and outputs in Chinese firms' independent innovation. [14] Feinberg SE, Majumdar SK. Technology spillovers from foreign direct investment in the Indian pharmaceutical industry [J]. Journal of International Business Studies, 2001, 32(3): 421-437. [15] Sherer FM. Corporate inventive output, profits and growth [J]. Journal of Political Economy, 1965, 73(3): 290–297. [16] Ernst H. Patent applications and subsequent changes of performanc: an evidence from time-series cross-section analyzed on the firm level [J]. Research Policy, 2001, 30:143-157. [17] 刘凤朝, 潘雄峰等. 15个副省级城市专利发展状况评价与分析[J]. 情报科学,2004(8):60-64.Liu Fengchao, Pang Xiongfeng. The assessment and analysis of patents development from fifteen vice-province cities [J], Information Science, 2004(8):60-64. [18] 张波涛,李延喜,栾庆伟等. 专利研发中“加速化陷阱”现象的实证研究 [J].科研管理, 2008(5): 89 -104.Zhang Botao, Li Yanxi, Luan Qinwei, etc., The empirical study on 'speed trap' phenomenon in patent R&D [J], Science Research Management, 2008(5): 89 -104. [19] Rajan RG., Zingales L. What do we know about capital structure? Some evidence from international data [J], Journal of Finance, 1995, 50: 1421-1460. [20] Bradly M, Jarrell GA, Kim EH, On the existence of an optimal capital structure: Theory and evidence [J].Journal of Finance, 1984, 39:857-878. [21] Fama EF, French KR, Testing trade-off and peeking order predictions about dividends and debt [J]. Review of Financial Studies, 2002, 15:1-33. [22] Hoshi T, Kashyap A, Scharfstein D. Corporate structure, liquidity and investment [J]. Quarterly Journal of Economics, 1991, 106: 33-60.