Impact of Monetary Policy Uncertainty on R&D Investment Smoothing Behavior of Pharmaceutical Manufacturing Enterprises: Empirical Research Based on a Threshold Regression Model

Jingyuan Yang, Ling Wang, Ziyuan Sun, Fangming Zhu, Yihui Guo and Yan Shen
Additional contact information
Jingyuan Yang: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Ling Wang: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Ziyuan Sun: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Fangming Zhu: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Yihui Guo: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Yan Shen: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China

IJERPH, 2021, vol. 18, issue 21, 1-17

Abstract: R&D investment is the source of technological innovation of pharmaceutical enterprises, but it will be restricted by the funding level, especially in the context of major public health emergencies occurring more frequently, therefore exploring the impact of monetary policy uncertainty on the R&D investment smoothing behavior of pharmaceutical manufacturing enterprises has important theoretical and practical value. Based on the relevant data of Chinese pharmaceutical manufacturing enterprises from 2012 to 2018, this paper studies the impact of monetary policy uncertainty on R&D investment smoothing behavior of pharmaceutical enterprises, and investigates whether there is a threshold effect. First, our results demonstrate that the empirical test results of this article support the hypothesis of R&D investment smoothing behavior of pharmaceutical manufacturing enterprises. Second, there is a negative correlation between monetary policy uncertainty and R&D investment smoothing behavior, and the shorter the period is, the higher the financing constraints of pharmaceutical enterprises are, and the more obvious the negative correlation is. Third, financing constraints have a single threshold effect on the R&D investment smoothing behavior of pharmaceutical manufacturing enterprises, with a threshold of ?13.7693. Moreover, this conclusion can better promote the virtuous circle of the real economy of financial and pharmaceutical manufacturing enterprises. It is recommended that pharmaceutical manufacturing enterprises establish and improve the enterprise R&D reserve system, reduce the risk of R&D investment, play the role of R&D smoothing, and realize the sustainable development of enterprise R&D.

Keywords: R&D investment smoothing behavior; financing constraints; monetary policy uncertainty; pharmaceutical manufacturing enterprises; threshold regression model (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/1660-4601/18/21/11560/pdf (application/pdf)
https://www.mdpi.com/1660-4601/18/21/11560/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijerp:v:18:y:2021:i:21:p:11560-:d:671544

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().