Product Market Competition And R&D Information Disclosure

Research and development information of digital form no longer meet the needs of the development of new economy.Compared with the Man-made manipulation on quantitative information,the textual information is hard to be clearly controlled from the linguistic point of view.The research on word frequency of research and development based on textual analysis in the past two decades has become a hot issue in the field of financial research as computer technology is involved in different language environments.Large sample study,text information extraction,semantic analysis provides a greater space for measurement.Research on R & D information in the context of Chinese mainly focuses on the scoring method of experts,and text analysis provides the possibility for large-sample R & D text research.By using this method,this paper tries to explain it from the perspective of product market competition.Focus on analysis of management motivation to disclose text research and development information.This paper takes the annual report of non-financial listed companies in China from 2003 to 2015 as a sample,and conducts a systematic logic analysis and empirical test on the impact of product market competition on corporate R&D text information disclosure.Through combing the changes in China’s innovation policy and R&D information disclosure system,the significance of R&D text information disclosure research is proposed.The background of China’s innovation and transformation has a profound impact on the development of enterprises.The impact of competition mechanism on corporate information disclosure strategies also varies due to the nature of different property rights and agency costs.This paper systematically reviews and empirically examines the mechanisms.Under the background of China’s innovation policy,product market competition has an incentive effect on R&D text information.The results of the study found that: First,the greater the level of industry competition,the higher the frequency of research and development;at the same time,the higher the market position of enterprises,the more they will use R&D text information to influence the decisions of competitors in the product market.Therefore,the level of information disclosure in R&D texts is also increasing.High;secondly,the incentive effect of product market competition on R&D term frequency is more significant in the sample of state-owned enterprises,which shows that the natural resource advantages of state-owned enterprises are sufficient to withstand the pressure of market competition,and are not afraid of the proprietary cost of information disclosure;The economic downturn and high economic policy uncertainty have a negative impact on the corporate financing environment and product market.The impact on state-owned enterprises is not as large as that of private enterprises.Therefore,state-owned companies’ R&D text information disclosure incentives are greater,while private enterprises are Due to the difficulty of predicting future economic trends,a conservative approach has not been adopted,and there has been no significant increase in R&D text information.For companies that have disclosed quantitative R&D expenditures,will they increase R&D text information in the fierce market competition? This topic has differentiated under different agency problems.As regards the first type of agency problem,namely the agency conflict between management and shareholders,management in the product market competition is forced to increase R&D text information due to its own reputation and business operating pressure;and in the second type of agency In the problem,the conflict of interest between the major shareholder and the small and medium shareholders is not mitigated by increasing the disclosure of text information,and there is a tendency to manipulate the R&D investment and cover it up.On the other hand,the development cost also determines the heterogeneity of the R&D text information disclosure.The development cost becomes a barrier for the coordination between the management’s short-term goals and the long-term development of the company,demonstrating the inhibitory effect.For the sample with low development cost,the sample of state-owned enterprises did not show a significant increase in text information.