Research On The Relationship Between Shareholding Struture、R&D Investment And The Company’s Financial Performance

Innovation is the fundamental driving force for enterprises to obtain sustainable vitality, animportant characteristic of the independent innovation is conduct the research and development(R&D) activities in the key link. It is the key factor to determine enterprises’ core strengths andperformance of the company. The R&D level of an enterprise can reflect the strength of thecompetitiveness. Therefore, the enterprises’ R&D investment is a hot problem in financial theoryand practice research together.In this paper, it reviews and evaluates the current status of research both at home and abroad,in the strategic goal of resource transformation, in the institutional background that the Ministry ofFinance issued the New Accounting Standards. Based on the principal-agent theory, technologyinnovation theory, resource based theory as the theoretical base of the study, using the biopharmaceutical industry listing Corporation in20102012in Shanghai and Shenzhen securities asthe study samples, several methods that have been used to descriptive statistics and empiricalanalysis. The paper discusses the relationship between shareholding struture、R&D investment andfinancial performance, in addition, attempts to introduce the R&D investment as the mediatingvariable on the shareholding struture and the financial performance.In this paper, it uses R&D investment as the core, R&D investment intensity as a measureindex, with the ratio of the nature of the controlling stake、 ownership concentration andexecutives’ shares to measure shareholding struture, uses ROA to represent the profitability ofenterprises, GROW to development ability. Then it investigates the relationship between the three,and the mediating effect of R&D investment on shareholding struture and the financial performance.The empirical results indicate that:(1) R&D investment intensity of private holdings listingCorporation was significantly higher than that of state-owned; ownership concentration is positivelyrelated to R&D investment; the higher executives’ shares, the higher R&D investment.(2)Non-state owned shares, ownership concentration and executives’ shares are positively related tothe financial performance.(3) R&D is positively related to the profitability and development ability.(4) R&D has mediating effect on shareholding struture and the financial performance.Finally, the article recommends some suggestion for the relevant departments aiming resultsand illustrates the limitations in this thesis. Also, it prospects the directions of the study in future.