Capital market,financial constraints and high-tech enterprises' R&D expenditure: evidence from China' listed firms dynamic panel data model with GMM estimation

Due to requirement a massive and sustained influx of funding over a long period of time for Firms' RD investment,external equity financing resource for firms' RD investment is a key factor affecting.In this paper we at first theoretically analyses the impact of capital market on firms' RD investment.Subsequently,Using the dynamic panel Data on China' high-tech listed firms with GMM Estimation;we empirically investigate external equity financing's influence on high-tech firms' RD investment.The study finds that external equity financing offered by capital market has a positive effect on the firms' RD investment,particularly for small firms.This article gives new empirical evidence for it and insights into the microcosmic mechanism of the effect of Chinese capital market on the real economy.