Study On The Impact Of Board Capital On R&D Spending

In the era of knowledge of economy, technological innovation has become the key to mproving the core competitiveness and preempting the market commanding heights for the enterprise. As one of the most important means of technology innovation, R&D is the lifeblood of enterprises’survival and development. R&D investment is the material base and resource guarantee of innovation activities in a firm, which is conducive to enhance the competitive (?)dvantage, build the core competitiveness. Compared with development countries, the companies in china have obvious problems in weak innovation ability and insufficient R&D spending. The R&D spending level of an enterprise is the result of R&D investment strategy. As the highest decision-making body of the enterprise, whether the board team members’ ersonal qualities and their social resources have an effect on R&D spending? And is the effect significant? In order to clarify these questions, based on the board capital as the entry point, this paper studied the impact of board capital on R&D spending.First of all, a literature review is presented from three parts, which are board capital, R&D spending and the impact of board capital on R&D spending. Then it arranges some related concepts and measuring methods, analyzes the composition of the board capital elements from (?)uman capital and social capital. Secondly, based on the theories of resource dependence theory und resource-based view, the paper probes into the mechanism of the impact of board human und social capital on R&D spending and puts forward the relevant hypothesis. In the empirical part, this paper build related models, and based on the evidence from the listed electronic & nformation industry in china, data from 2011 to 2013 is used to analyse by the statistical software SPSS 19.0 and Eviews6.0, it draws the following conclusions:in terms of director’s (?)uman capital, the average age is negatively related to R&D spending, while, the average education level and functional background heterogeneity have positive effect on it; in terms of lirector’s social capital, market and financial resources of the interlocking director as well as he political capital of directors can improve R&D spending, however, the technical resource of he interlocking director has no significant effect on R&D spending. Finally, according to the results of the empirical research from the angle of board capital, this paper put forward several policy suggestions to improve R&D spending, some limitations and prospects of the study are elaborated in the end.