The Study On The Influential Factors And Economic Effect Of R&D Investment Of Chinese Listed Companies

Innovation must be the new origin of Chinese economy growth in 21 century. Corporations are the microcosmic entity of innovation, but scholars have discovered that most Chinese corporations ignored R&D investment. This study attempts to explore the reasons for under-investments in R&D, from a microcosmic perspective of finance.The paper inosculated competence-based theories and contract theories of the firm. Theoretical analysis conclude: the mechanism of restricted rights and allocated benefits will improve the allocation of R&D resource, corporate governance structure has ultimate effects on R&D investment.In empirical studies, the paper investigated the relationship among corporate feature, intensity of R&D and the performance of R&D for Chinese listed companies in 1999-2006. Conclusions include: (a) there are distinct relations between the intensity of R&D with property right, board nature, top managers, financial characters and lifecycle, Force of these factors depends on the property of the largest shareholder. (b) performance of R&D only persist for three years, the mechanism reducing agent cost help to improve performance of R&D investment.Finally, the paper concludes that construction of perfect corporate institution under sustainable development can improve the allocation efficiency of R&D resource.The feature of this study is the perspective of theoretical analysis and the use of new data. It Analyses the different property rights, governance feature and R&D investment trends of Chinese listed companies in the same frame, establishing a database of R&D investment for Chinese listed companies.