A Study Of Relationship Between Ownership Structure, Institutional Investor And R&D Investment

R&D activities are the very core of the innovation activities, which is regarded as animportant strategic investment to provide a long-term power for the firm’s development. Butdifferent kind of ownership structure has its own advantages and disadvantages, and there arealso different opinions on whether institutional investor can play an active role in corporategovernance, so this research has important realistic meanings.For ownership structure, this research studies how such factors as ownership type,ownership concentration, ownership balance will work on R&D investment. For institutionalinvestor, this paper’s innovation is linking institutional investor with ownership structure, andanalyze whether institutional investor has play different function in the corporate governanceunder different ownership structure background.This research is carried out on observations of R&D expenditures disclosed in theannual reports dated2004-2010. There are755listed companies in the sample. This paperadopts descriptive analysis and regression analysis methods to research the influence of theownership structure and institutional investor on R&D investment. This paper draws thefollowing conclusions:（1） The R&D investment intensity of non-state-owned listedcompanies is significantly higher than state-owned listed companies, the incentive of R&Dinvestment in state-owned listed companies is relatively insufficient;（2）There was“N”typerelationship between ownership concentration and R&D investment intensity, the role of thecontrolling shareholder played in the R&D decision-making changes with the shareproportion（;3）There was“U”type relationship between ownership balance degree and R&Dinvestment intensity（;4）Institutional investor has a significant positive influence on the R&Dinvestment in the total sample, but after divided the total institutional investor sample intopressure-resistant and pressure-sensitive two groups, the results show that only pressure-resistant institutional investor has a significant positive effect on R&D investment intensity,there was no significant effect on R&D investment intensity in the pressure-sensitive group;（5）After the grouped regression classified according to ownership type, the results showthat institutional investor has a significant positive effect on R&D investment intensity innon-state-owned listed companies, but no significant effect was found in state-owned listed companies;（6）After the grouped regression classified according to the proportion ofthe first shareholder，the results show that institutional investor has a significant effect onR&D investment intensity in the low first shareholder proportion group（Shr1<30%）;institutional investor is not related to the R&D investment intensity in the highfirst shareholder proportion group（Shr1＞30%）（;7）After the grouped regression which wasclassified into two groups according to the ownership balance degree, the results show thatinstitutional investor is not related to the R&D investment intensity in the low ownershipbalance degree group（B＞1）, but shows a significant effect on R&D investment intensity inthe high ownership balance degree group（B＜1）.