Research On Ownership Structure And R&D Investment Relation

The research on how to optimize the corporate governance has absorbed more and more scholars. On the one hand, previous researches on ownership structure focus more on its impact on corporate value but not on investment. On the other hand, more and more listed companies have paid much attention on R&D investment, but because it is not easy to get the data about R&D, few scholar studies on R&D investment .Therefore, it's our aim to define the relationship between ownership structure and R&D investment.To test whether ownership structure has an impact on R&D investment, the thesis makes literature review, put forward hypothesis, and then make empirical study and draw the conclusion. By using the data of 223 listed companies during 2005 to 2007, the thesis studies the impact of ownership structure on R&D investment. The thesis defines ownership structure qualitatively and quantitatively as the type of eventual controller and ownership concentration, ownership balance, thereby dividing empirical study into three parts. The first part tests the impact of the type of eventual controller on R&D investment, which is qualitative study. In this part, we don't choose the first big shareholder's ownership to represent the ownership character but the type of eventual controller. Therefore, it is one innovation of this thesis. The second part tests the impact of ownership concentration on R&D investment. In this part, we regress on all the variables exclusive of ownership concentration firstly, and then add ownership concentration to see the coefficient change of every variable. Next, we add the type of eventual controller to see the difference under different eventual controller. The third part tests the impact of ownership balance on R&D investment. We use the same regression method with ownership concentration. In the quantitatively studies, adding the type of eventual controller is another innovation of this thesis.We draw the following conclusions: firstly, listed companies of state-owned have input much less in R&D investment .Secondly, as the ownership concentration increasing, R&D investment first increased, then decreased, finally increased. This relation is very significant. Thirdly, the impact of all samples'ownership balance on R&D investment is not significant. This thesis gives three advertisings: Firstly, we should decrease the number of state-owned companies. Secondly, we should make the ownership concentration changes while the R&D investment increasing. Thirdly, we should make use of ownership balance reasonably.