Study About Influence Of Corporate Governance On R&D Investment Of China High-tech Companies

With the advent of the knowledge economy era, the development of human societyare more dependent on the progress of science and technology than any previous era,the development of technology undoubtedly has become the core driving force forsocial development. Technology innovation is the main enterprise developed aneffective method to promote scientific and technological progress. As a high-techenterprise technological innovation the main representative for the optimization of thenational industrial structure, change the mode of economic development, promote thecountry’s economic development has led and radiation. In order to promote thedevelopment of high-tech enterprises, China has formulated and implemented a seriesof preferential policies and development planning. Been to years of efforts, China’s R&D investment continued to increase, but compared with developed countries is stillat a low level. Inadequate corporate governance structure is considered to be one ofmany scholars restrict corporate R&D activities in the main factors.R&D investment is influenced by external environmental factors and internalgovernance structure factors, external factors will eventually have an effect indirectlyby affecting the internal corporate elements. Internal factors should be the main factorsaffecting R&D investment. The corporate governance is an institutional framework tosolve the conflict between shareholders, the board, managers and even the board ofsupervisors. Therefore, this article research the influence of corporate governance onR&D investment from the perspective of the corporate governance structure.First, the paper describes the research background, significance, and summarizethe literature of the sort. Most studies research from a particular aspect of corporategovernance, such as board structure, ownership structure and other aspects, few studiesresearch systematically study from the perspective of the corporate governancestructure. The conclusions are not consistent, and rarely for the high-tech industry inthis particular industry empirical research, then the conclusions will affected bydifferences in the industry.Secondly, the paper theoretical analysis the influence of corporate governancestructure (including ownership structure, board structure, management structure and theSupervisory Board structure quartile aspect) on R&D investment. Then proposed research assumptions.Third, the paper define the variables and design research model. Then select theenterprises that are listed in the Shanghai and Shenzhen stock before December31,2010and are identified as high-tech companies before2010as samples. This articlewill analyze the2010-2012data of the sample enterprises. Firstly, do the descriptivestatistics of each variable the whole sample and packet sample; then chooses the relatedindicators, using multiple regression model for correlation and regression test on thecorporate governance structure, R&D strength, analysis the relationship between thevariables..Finally, this study found that: state-owned shares is not conducive to R&Dactivities, which requires further intensify our efforts to reform state-owned enterprises,clear property rights responsibilities of state-owned enterprises to enhance the living;corporate R&D investment and ownership concentration was first increased, thendecreased, to rise again, last fall ’s "M" type, and found that the large shareholdersholding more than1/3can bring positive effect, rather than the traditionally identified50%absolute holding ratio, also major shareholders will reduce R&D investment ifthey hold excessive shares because of unable to disperse risk; equity balance betweenthe major shareholders in favor of R&D activities; board size negatively correlatedwith the intensity of R&D investment; board independence positively correlated withthe intensity of R&D investment, independent Directors are able to promote R&Dactivities carried out; executives shares at the ratio of R&D intensity positivelycorrelated, indicating that equity incentives are effective; chairman and generalmanager held by the same person are propitious to increase R&D investment;Supervisory Board size are positively related to R&D investment, but did not pass thetest of significance; Supervisory Board held shares in favor of R&D activities.