Study On The Influence Mechanism Of New Venture’s Board Capital To The Growth Of Company

In recent years, scholars gradually set up the board capital as the researchobject which takes knowledge, experience, socialrelations and the ability to obtaininformation as the main content, along with study on theboard and corporate valuecreationis deepened.They investigated the influence of boardcapital on the strategicchange, technological innovation and enterprise performance, and the interaction effects ofboardand executive on enterprise’s strategic decision.At the same time, since the GEM started of China in2009, the GEMlisting enterprises have made remarkable achievements,and these enterprises aremostly belong to the high-tech industry, which are shorter established, smaller, buthavevery large development space.Scholars think that the board capital and R&D are theimportant factors affecting the development of enterprise,and discuss the relationshipbetween them.It combinestheresourcedependencetheorywithprincipal-agenttheory,explores howboard capital affects enterprise growth, andfor the first time, discusses if the R&Dinvestment plays an intermediary role in the impact of board capital to the enterprisegrowth, and if theexecutive incentive has a regulating effect onthe relationship ofboardcapital andR&D investment.The sample data used in the empirical researchcomes from147listed companies ofChina’s GEM since2010to2013. By means of principal componentanalysis and multipleregression analysis, wesubmit that the breadth and depth of boardcapital exist significantpositive effect on the growth of enterprises;R&D investmentplays a full intermediary rolein the relationship of board capital breadth and the growth of enterprises, and a partiallyintermediary role in the relationship of board capital depth and the growth ofenterprises.We also recognize executive compensation incentives as a moderator of thepositive impact of board capital on R&D investment.The research conclusions of this paper enrich the study related to the boardcapital, R&D investment and the growth of GEM Listing enterprise,provides referencefor optimizing the allocation of themember of the GEM Listing enterpriseboard, andincreasing R&D investment througheffective executivecompensation incentives, and ultimately promotes the growth of enterprises.