Research on Financing Ecology and Financing Efficiency of Strategic Emerging Industries in China

Abstract

After integrating external ecological and endogenous factors of the development of the industry, the paper builds a financing ecology index system, and analyses the financing ecology of strategic emerging industries in recent years. Then the paper further analyses the influence of external and internal financing ecology on financing efficiency. The results show that the financing ecology of the strategic emerging industries, external financing ecology in particular, is in the continuous improvement. The financing efficiency is significantly positively correlated with the macro-economy level and the internal financing ecology, and significantly negatively correlated with the role of government. There is a positive but non-significant correlation between financial development and financing efficiency, meanwhile a negative and non-significant correlation between credit environment and financing efficiency. The internal and external financing ecology can be replaced to some extent. Therefore, the strategic emerging industries should give full consideration to the synergistic optimization of the endogenous factors and external financing ecology so as to improve the financing efficiency.

Research on financing efficiency of China's strategic emerging industries based on super efficiency DEA and tobit model

“…The results show that seven factors, such as account receivables turnover days, return on assets, quick ratio, net profit growth rate, total assets and total compensation of the top three executives, all have significant effects on the equity financing efficiency of strategic emerging industry listed companies. Xu and Geng (2020) selected the strategic emerging industry listed companies included in the Shenzhen Emerging Index as a research sample and analyzed the impact of financing constraints, financial development and the interaction between the two on the financing efficiency of strategic emerging industry listed companies. The research found that: financing constraints, financial development level and the financing efficiency are significantly positively correlated, and the combined effect of the two is conducive to improving the financing efficiency of listed companies in strategic emerging industries.…”

“…In terms of empirical research on financing efficiency evaluation, the methods adopted by scholars mainly include fuzzy comprehensive evaluation method, multiple regression analysis method, entropy method, data envelopment analysis method (DEA), among which the DEA method builds an input-output indicator system, which closely integrates the integration and use of corporate funds and overcomes the subjectivity of indicator weight design, can effectively evaluate the efficiency of the entire financing process and has become the leading method for evaluating financing efficiency. Based on the super-SBM DEA model of Tone (2002), in this paper, the data envelopment analysis method (DEA) is adopted to solve this problem (Xu, 2018;Zhang, 2018;Wang, 2020). Applying the DEA method to the evaluation of corporate financing efficiency has the following advantages:…”

“…This is somewhat different from previous scholars' studies. For example, Xu (2018) found through analysis that the overall efficiency of the bio-industry financing is the best, which is consistent with the results obtained in this article, and most other scholars also obtained the same conclusions (Liu and Liu, 2020;Ma and Wang, 2019), followed by new materials and a new generation of information technology, and the overall financing efficiency of new energy vehicles is low, which is quite different from the research in this article. This may be due to the economic environment in which the sample is located; this paper believes that in recent years, the country has paid more and more attention to the development of the new energy industry, which has provided great financial support for the development of the new energy industry.…”

The Influence Mechanism of Different Cash Flow Availability on R&D Investment: Evidence from China

“…CFO belongs to internal finance and is the normal source of cash for firms. According to Xu et al [23], CFO represents capital turnover and improves the ability of the firm to handle risks, which can ensure the smoothing of R&D investment. CFI mainly includes cash inflows and outflows from buying machinery and equipment, plants, advanced technology, intangible assets, etc.…”

“…CFF comprises external funds. External creditors and investors are only willing to invest in investments that are considered to be financially sound and, hence, are reluctant to invest in R&D activities, which have the characteristics of high uncertainty [23]. Based on the statements, CFO can be the most accessible source of finance for firm R&D investment, and CFF can be the least accessible source of finance for firm R&D investment.…”