Management Turnover And R&D Investment On The Perspective Of Managerial Entrenchment

Technology is the first productive force of the enterprise,advanced science and technology can optimize the production and management process of the enterprise, promote the upgrading of products, improve the existing management mode and improve enterprise’s market position.Undoubtedly,Innovative consciousness and innovative ability is the key to survive and develop for the modern enterprise,and the external features of science and technology will exert a subtle influence on the whole industry innovation level,and promote the progress and development of social economy.Enterprise is the starting point of innovation activities,Schumpeter believe that in fact enterprise innovation activities dominate by the entrepreneurs,that is to say corporate management is indispensable innovation leading talents in modern enterprise.This article is from the perspective of the main body of innovation activities—management to study the effect of the R&D of the enterprise.With the development of capital market in China,Executive turnover in the listed companies in our country is becoming more and more frequent, the differences of new management and former management in cognitive will affect the enterprise management decision, particularly in investment decisions.The paper is based on the The theory of Managerial Entrenchment to research the effect Executive turnover on R&D.This research choose the a-share listed companies as research samples from 2010 to 2014,and after the enterprise change the executive, the new executive effects on the enterprise R&D.At the same time packet inspection different management shareholding, executive salary and executive personal characte- ristics is a significant difference on the relationship of executive turnover and the enterprise R&D.The results is that after the enterprise change the executive,the new executive will reduce the R&D,because the R&D investment activitie has long cycle,high risk and income of great uncertainty. Management shareholding, management salary and management degree have inhibiting effect on the relationship of executive turnover and R&D, and the management age and the female have promoting effect on the relationship of executive turnover and R&D.