The Research on the Interaction between Financing Strategy and Investment Strategy

In a three-stage dynamic game model, the article studies the relationship between investments financing and product market competition in the case that the enterprise´s debt financing strategy is made after making research and development investment strategy under uncertain circumstance. The research show that under the enterprise´s margin income increasing with market demand booming, the increase in the enterprise´s debt level will make the product market competition more intensively, instead the opposite is true. The enterprise´s ex-investment strategy not only has direct and indirect effect, but also affects the degree of debt-financing´s strategically commitment effect.