Study On Moderating Role Of Board Characteristics On The Relationship Between R&D Investment And Financial Performance Of China Listed Companies

With the development of the world economy, economic interdependence between the various countries and regions gradually increase, more and more intense competition among enterprises, technological innovation reflect its important position for company in the survival and development. Through R&D investment activities, corporate obtain core technology, develop new products, or to be able to better meet customer needs, then won the competition in the market, seize new market, ultimately, obtain higher profits.The domestic and foreign scholars study shows that, R&D investment on corporate performance have positive influence. But because the R&D investment activity has those characteristics:risky, income uncertainty, revenue of long-term, information asymmetry, so the agency problems are more serious. Different corporate governance, through the supervision and incentive mechanisms affect management behavior and the R&D investment effect. In recent years, scholars at home and abroad pay close attention to corporate governance and the relationship between R&D activities, direction shifted to corporate governance, R&D investment and corporate performance of the relationship between the three. This paper was mainly comprehensive analysis moderating effect of board governance of R&D investment and the company’s financial performance.This paper use the2007-2010annual report of the Chinese listed manufacturing and information technology firms that disclose their R&D expenditures as the research object, based on the panel data of sample firms, use moderator variable regression analysis and subgroup analysis to draw the following conclusion:(1)The R&D investment has a promote effect on the company’s performance in the coming year, and high-tech enterprise R&D investment on firm performance promotion role is more than non high-tech enterprises;(2) The size of the board of the high-tech enterprise in R&D investment and performance relationship did not show a significant moderating effect, but in non-high-tech enterprise, the larger the size of the board has a positive role in moderating the relationship between R&D investment and company performance;(3) The proportion of outside directors on the relationship between R&D investment and company performance have no moderating role, our country outside directors and independent directors does not have a full role to play;(4) Leadership structure of the two separation can promote the relationship between R&D investment and company performance of the non high-tech enterprises, while leadership structure of the two unity can promote the relationship between R&D investment and company performance of the high-tech enterprises;(5)the board shareholding ratio have a negative moderating effect to the relationship between R&D investment and company performance of the high-tech enterprises, while no moderating effect to non high-tech enterprises.