Research Of Strengthen The R & D Investment Based On Earnings Management Governance

Party Plenum proposed that comprehensively implementing the concept of scientific development must adhere to enhance the important principles of the innovative capacity. Independent innovation is the key to enhance the level of Enterprise technology and to economic competitiveness, but also is the central link to adjust the industrial structure and transform the mode of growth; R&D expenditure is an important indicator to measure the ability of independent innovation. Therefore, from the view of earnings management governance to study whether R & D expenditures should be strengthened as well as how to strengthen is very important.This paper take the consecutive disclosure 173 R&D expenses newest data of the Shanghai and Shenzhen listed companies from 2005 to 2008 as the sample studied, take R&D growth rate as the independent variables, Combination of earnings management research this paper specially from the enterprise's internal management and taking into consideration not to exclude the use of discrete samples 230 prior to the disclosure of evidence, looking for R&D intensity of treatment affect the structural factors.Empirical results confirmed the fact that in the case of lower R & D intensity, earnings management using R&D expenditure exists, and the separation of chairman and general manager, the director of a small size but also help companies research and development activities. So this paper proposal Enterprises should standardize the disclosure of R&D and improve the strength. One can expect a decrease in earnings management practices, while strengthening the corporate R&D investment, regulate the disclosure of corporate R&D to promote business more perfect, more competitive.Literatures are endless which to prove the increase in investment R & D in business from the view that to improve enterprise performance. But the paper tries to look for the other ways, from the relationship between the earnings management and R & D expenditure, the paper proposes to increase the strength of business R & D investment. From another perspective, it supports policies and measures to increase R & D investment, while from the internal governance structure, proposing management measures to increase R & D investment. This is the innovations of this thesis.