Research On R&D Expenditure And Its Moderate Mechanism-Based On Upper Echelons Theory

The fate of modern corporate rests to an increasing extent on competitive advantage gained from innovation and high R&D expenditure.However,R&D expenditure,which has the characters of high risk and highly indeterminacy,always easily arouses conflict between managers and shareholders.Every R&D expenditure decision is a result of compromise with many powers.R&D expenditure represents firms' willing on innovation and could help firms to build competitive adventure.In order to help firms make scientific R&D expenditure decision and promote performance,this paper took R&D expenditure as research subject.Listed companies always contend for control rights and present a written report to stock exchange and CSRC for control rights nowadays.So,how control rights influence R&D expenditure,a decision which causes many forces' conflict usually,is one of the main topics in this paper.The privatization and the mixed ownership reform have implemented from 2003 in China.According to government's policy,privatization reform will enter into critical year in 2017.What's the influence of privatization reform on technical leader and firms' innovation willing is another main topic in this paper.Before answering the former two questions,firstly,this paper use 176 questionnaire datas from 17 provinces of China in clarify why R&D expenditure is so important.Combining the capital of R&D expenditure and researchers of R&D expenditure,linking with firms' behavior,this paper answered the mechanism between R&D expenditure and firms' performance.Meanwhile,Social capital becomes the third important force to resource allocation,and it determines the quantity,quality and content of decision making for the leaders.Based on the research results that researchers could regard leaders' social capital to firms' social capital,this paper explore the mechanism from firms' social to R&D expenditure,and the mechanism from R&D expenditure to firms' performance.Therefore,social capital is the third main topic in this paper.Then,based on upper echelon theory,institutional logic theory,social capital and researches on R&D expenditure,this paper used all the listed companies from 2007 to 2015 to do further research and found that: 1)control rights is the moderator between different functional background leaders and R&D expenditure.It makes negative influence on technical leaders' preference on R&D expenditure while it makes positive influence on sociological leaders' contradict on R&D expenditure.2)using two-stage method for mixed section treatment effect model,the results told us that privatization releases technical leaders' enthusiasm on R&D expenditure and then it will be helpful to motiving firms' innovation participating willing.3)using multi regression,quantile regression and other regression methods,this paper found that only Bureau level with government ties and other higher level with government ties would have influence on R&D expenditure,otherwise,there is no significant influence on R&D expenditure.Besides,chairmen's different kinds of social capital make positive influence on firms' profitability through R&D expenditure while CEO's different kinds of social capital would help firms to reduce risk through R&D expenditure.