The Effects Of Board Characteristics On R&D Investment

With intense market competition and development of technological changes in research, development investment has gradually become a key means of enterprises have the core competitive advantage.R&D is the important reflection of technology and innovation ability, the main way to realize technology innovation,the method to promote economic growth and the effective means to significantly increase international competitiveness.R&D activities is a kind of investment activities which can be directly related to key competitive advantage.Previous research data show that compared with the developed countries abroad, chinese enterprises, especially private listed enterprises has a smaller scale of investment because of insufficient funds.These private enterprises rely mainly on "exogenous technology" to maintain economic development, causing that most of private enterprise are lack of long-term competitiveness.Thus, private enterprises should be fully realize that the R&D investment is a important role to save private enterprises to get rid of competitive disadvantage.They should consider the development of private enterprise in the future and actively build the strategy of technological innovation. Private enterprises should consider R&D as a competitive advantage in the market competition.R&D as a strategic choiceis not only influenced by external environment and internal characteristics, but also influenced by bounded rationality of strategic decision-makers and the model of the board of directors.The board of directors governance have great influence on the scale of R&D investment.This paper which is based on the research of the board of directors characteristics reveal the relationship between the board characteristics and R&D investment to find out the factors affecting the scale of R&D in board characteristic of private enterprise.The paper expect to provide basis for reasonable R&D investment for the private enterprise, increase the data of R&D activities of private enterprises and promote the level of independent innovation of private enterprise.The conclusion can improve the ability of the creation of long-term returns, increase the potential and market competitiveness and promote the sustainable development of private enterprises in our country.Based on our country’s listed and private companies as research samples, selected the Chinese private listed companies in2009-2009, three years of board characteristics and R&D data, using regression analysis method, using STATA metering, characteristics of the board of directors related factors impact on R&D of listed companies of our country has carried on the empirical research.Overall, this article research conclusion has the following several aspects:the size of board are effectively related to R&D investment;thesetting between chairman and general manager have a good effect on R&D investment;the board of directors of short-term incentive and long-term incentive and R&D investment are related. Proportion of independent directors and the board of directors meeting times have no significant correlation between R&D investment.According to the result of empirical study, this paper presents several advice such as a advocate chairman and general manager both unity and improve the independent director system, improve the efficiency of the actions and policy Suggestions to strengthen the board incentive plans, and the problems and the future research direction of this article are expounded.