An Empirical Research On Relationship Between Technology Capital And Corporate Governance

From the Third Technological Revolution leaded by the information and communication technology,high-tech has been becoming more and more important industry in developed countries in the new century.Technology becomes an indispensable element in all our lives,influencing the production and the consumption. The combination of the technology,and other elements,greatly promotes the Social Productive Forces.In China,the investment in technology by the Government and enterprises increases significantly.In 2007,the national R&D expenditure is 371.02 billion yuan,of which,business R&D expenditure accounts for about 72.3%.In addition,technology funding expenditure increases to 211.35 billion yuan,accounting for 3.7 percent of financial expenditures.The technology becomes a key factor to survive and develop for companies in the modern market.Technology can be evaluated visa transactions in the market,then which can be called technology capital.On the basis of the Theory of the Modern Firm,a firm is the contract combination of various elements.As a vital resource,the owner of technological capital must bargain with other owners to obtain the rights of residual income and residual control,that is,to take part in the corporate governance.On the other hand, the risk of technological capital can make the owners to be prone to participate in the corporate governance.This action must cause the re-design of the corporate governance structure.So we can induce that there must be a significant relationship between technology and corporate governance,which is the starting point and the purpose of this paper.There are 5 sections in this paper,which are as follows.The first section is the introduction,which mainly says the background and the significance of the paper. And the main content of the second section is literature review.There are a few researches on the Relevance of technological capital and corporate governance.So this paper can enriches and develops the theory of corporate governance.The design of the research method is introduced in the third section.All the indications on technological capital and corporate governance are delimited.And then,a comprehensive indication can be determined by the principal component analysis, which describes the level of the corporate governance.The task of the fourth section is data collation,analysis and results testing.In this paper,the data comes from the 2007 financial reports of 54 companies belonging to technology industry and exchanging in the Shanghai Stock Exchange.Unfortunately,we can't find the significant relevance between the technical capital and corporate governance in my tests,which is because of system deficiencies of property rights protection,as well as the incomplete of alternative targets.The fifth part is the conclusion of this article.In this part,summarizes will be given and recommendations will be made to improve the current technology capital markets,as well as to further enrich and improve the corporate governance theory.In this paper,the discuss brings a new point about corporate governance,which is on the relationship of the technological capital and corporate governance.There are very important roles in developing the theory of corporate governance,and providing theoretical supports and guidance on building a modern corporate governance structure.In addition,technological capital is regarded as a necessary element of the capital structure which extends the theory of capital structure.