Study On Influence Of Corporate Governance On Performance Of R&D Investment

With the rapid development of high-tech, corporate is facing unprecedented opportunities and challenges and the importance of research and development of science and technology is also increasingly apparent. In recent years, funding for R&D investment in China continued to maintain the growth trend, but the performance of R&D investment are far lower than developed countries in the West. Corporate R&D activities are the basic channels to achieve its technical upgrading, in order to survive in the increasingly fierce competition in the new century, the corporate must strengthen investment in research and development in science and technology and constantly updated production technology to make corporate s stay at cutting edge of technology in the industry, so as to maintain the dominance of the corporate market competition, and to ensure the long-term development of the corporate. As the corporate R&D activities are benefited uncertainty, inter-temporal and information asymmetries, which makes research and development activities in the principal-agent problem highlights, it has seriously hampered the efficiency of R&D investment. Good corporate governance can effectively reduce costs, mitigate information asymmetries and principal-agent problem. Therefore, to study the impact of corporate governance on corporate R&D investment performance has important theoretical and practical significance.The paper is divided into seven chapters:The first chapter is an introduction, which mainly interprets the topics background and significance of the research, reviews the current situation of the domestic and foreign related research, lists the research content and research framework and illustrates the research method and research ideas; the second chapter is theory summary. It defines R&D investment, performance and corporate governance and discusses the theoretical basis of Schumpeter’s innovation theory, the endogenous growth theory and the principal-agent theory; Chapter three is the study of lag effects of corporate R&D investment performance, which empirically confirms the company’s R&D investment performance existing significant lag effects; Chapter four is the study of the cumulative effect of corporate R&D investment performance based on the modified Cobb-Douglas production function, which empirically tests of the cumulative effect of the corporate R&D investment performance; Chapter five studies the level of corporate governance measure and makes a reasonable evaluation of the level of corporate governance by the method of principal component analysis;Chapter six studies the moderating effect of corporate governance on R& D of investment performance and also build a test model for it which adopt hierarchical moderated regression analysis and grouping regression analysis to empirically test positive moderating role; Chapter seven is research conclusions and prospects review, which summarize the results of this study, refined three main innovations and proposed future research suggestions and ideas for the weaknesses in the study in this article.This study acquires four main research results in the following aspects:First, it build a two-way fixed effects test model and found that the performance of corporate R&D investment exist significant lag effect by empirical research method. On the basis of taking the individual effects and time effects into account, the paper build a two-way fixed effects test model by controlling the capital structure, firm size, growth, free cash flow and other factors. Empirical test found that the effect of corporate R&D investment performance of two period lag is obviously higher than that of one period lag and three period lag and is the highest significant level, which means that R&D investment performance exists significant lag effect.Second, it has extended Cobb-Douglas production function and found that there is a significant cumulative effect in performance of corporate R&D investment by empirical test. Take the impact of institutional and environment factors of transition period in China on corporate production into account, the paper particularly cites the factors of market degree into the Cobb-Douglas production function and has extended Cobb-Douglas production function. It empirically tests of the cumulative effect of the R&D investment performance by OLS regression analysis. The study results show that the performance of corporate R&D investment exists significant cumulative effect. There is significant cumulative effect in R&D investment performance of three lag period, while it does not exist significant cumulative effect in or after the fifth period.Third, the paper measures the level of corporate governance scientifically and reasonably. From the aspects of the mechanism of shareholding structure, the mechanism of the Board, the mechanism of Board of Supervisors, pay incentives mechanism, information disclosure mechanisms, audit mechanisms and other mechanisms of the commission, it selects twenty corporate governance evaluations, establishes the evaluation system of the level of corporate governance, builds the evaluation model of corporate governance and make a reasonable evaluation of the sample corporate governance level by principal component analysis method.Finally, the paper builds moderating effect model of the corporate governance on performance of R&D investment and test the moderating effect of the corporate governance on R&D investment performance by hierarchical moderated regression analysis and grouping regression analysis. The empirical results show that the moderating effect of corporate governance on performance of corporate R&D investment is significant, the corporate governance plays a positive moderating effect in corporate R&D investment performance and the improvement of the level of corporate governance will help improve the performance of corporate R&D investment.The main contribution of this paper is:first, fixing the Cobb-Douglas production function to enrich the research method of the cumulative effect of corporate R&D investment performance. Enhancing the explanatory power of the Cobb-Douglas production function in the Chinese market and providing the research of the cumulative effect of corporate investment performance with a new perspective and tools; second, establishing the level of corporate governance evaluation index system, constructing a measuring model of the level of corporate governance and conducting an empirical test; Third, building the regulating effect model of corporate governance on corporate R&D investment performance, revealing the positive moderating effect of corporate governance on the performance of R&D investment.