TMT Characteristics And Firm R&D Investment

Under the background of increasing fierce competition in the market,knowledge economic rapidly springing up and the rapid development of global economic integration,the enterprise must invest in R&D continually to foster core competence and to provide driver for sustaining development.At the same time,the Upper-echelons Perspective argued that organizational outcomes—both strategies and effectiveness—can be viewed as reflections of values and cognitive bases of top management team in the organization.Based on this theory,this dissertation tries to explore the reasons for the difference of companies R&D investment in the angle of view of top management team characteristics.This dissertation makes use of the date and information from Chinese manufacturing listed firm in 2005 and 2006 to explore the relationship between the TMT characteristics and firm R&D investment.The result shows that the education level and the proportion of members with technical background in TMT is positively associated with R&D investment,and the age heterogeneity, the background heterogeneity and the team size of TMT is negatively associated with R&D investment.Considering the distinct difference between the CEO and other members of TMT,this dissertation examines the relationship between CEO characteristic and R&D investment, the results show that the CEO characteristics explain less difference of R&D investment than TMT characteristic,from which we can conclude that the corporation can not handle with the complicated environment by a single hand instead of an efficient team in modern intricate operate circumstance,and that the corporation management is a process of share.By means of subgroup regression of SOE and non-SOE,this dissertation finds that the TMT in non-SOE have more discretion in R&D investment comparing with SOE.