Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020)

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The Impact of High-Tech Enterprises’ Cash Holdings on R&D Investment

Authors
Hongchuan Zhang
Corresponding Author
Hongchuan Zhang
Available Online 23 January 2021.
DOI
10.2991/assehr.k.210121.175How to use a DOI?
Keywords
High-tech enterprises, Cash holdings, R&D investment, Financing constraint
Abstract

With the convening of the 19th National Congress of the Communist Party of China, our country has firmly implemented the innovation-driven development strategy. As microeconomic entities, enterprises should actively respond to the call of the country to transform economic development patterns and strive to enhance the level of scientific research and innovation. Therefore, it is becoming more and more important to study how to strengthen enterprise innovation and R&D investment. Financing channels have always been one of the important factors affecting enterprises’ R&D investment. Previous studies have shown that the funds supporting R&D activities of enterprise are mainly the cash held within the company. Therefore, this paper studies the influence of cash holding level on R&D investment intensity with the samples of China’s A-share listed high-tech enterprises from 2014 to 2018. The empirical results show that there is a significant positive correlation between cash holdings of Chinese high-tech enterprises and their R&D input, and the positive effect is more significant in non-state-owned enterprises and enterprises with high degree of marketization. This study expands the relationship between the level of enterprise R&D investment and financing constraints, and deepens the understanding of cash holdings.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
23 January 2021
ISBN
978-94-6239-320-2
ISSN
2352-5398
DOI
10.2991/assehr.k.210121.175How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Hongchuan Zhang
PY  - 2021
DA  - 2021/01/23
TI  - The Impact of High-Tech Enterprises’ Cash Holdings on R&D Investment
BT  - Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020)
PB  - Atlantis Press
SP  - 901
EP  - 908
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210121.175
DO  - 10.2991/assehr.k.210121.175
ID  - Zhang2021
ER  -