An Empirical Study On The Relationship Between Executive Shareholding?R&D Investment And Corporate Performance

With the rapid development of social economy, our country's enterprises are facing unprecedented opportunities and challenges, the importance of research and development for enterprises is becoming more and more prominent. Manufacturing industry is the main body of our national economy, and the history of countries all over the world have already proved that without a strong manufacturing industry, there is no development and prosperity of a country and a nation. As one of the pillar industry of our country, Manufacturing industry is the main body of the Chinese economy, so it is an inevitable choice to build a strong international competitiveness of manufacturing industry of the sustainable development in our country. At present, the development of the global manufacturing pattern is undergoing great changes, and the development of the manufacturing industry in our country is in economic transition at this important historical moment, the opportunities and challenges coexist. Meanwhile, The report to the Eighteenth National Congress pointed out that enterprises should firmly seize this rare historical opportunity, and highlight the important strategic decision of research and development innovation, to realize the "three changes" that pointed out on the report to the Eighteenth National Congress, implementation from the epitaxial growth to the connotation of economic growth, improve the efficiency of production factors, and enhance the staying power of enterprises' development to promote the steady development of the economy, which is of far-reaching significance for the development of Chinese enterprises.For the enterprises of our country, only by constantly research and development activities can a enterprise maintain its advanced technical level, and has the motive force of sustainable development, thus can not be eliminated in the fierce market competition. However, with the expanding of enterprises' scale, the increasingly separation of ownership and managerial authority of the enterprise principal-agent problems between shareholders and managers are increasingly prominent. Although shareholders tend to prefer research and development activities for long-term development of enterprise, the enterprise operators are often rejected to research and development activities because of the long-term research and high risks, the results of this is specially adverse to the long-term development of the enterprises. Executive shareholding make it possible for senior executives to participate in the distribution of the ownership of the remaining, thus can promote consistency of senior executives and the enterprises' goal. So executive shareholding can solve the principal-agent problem in the course of business management from a great extent. Therefore, under the relevant scholars' research, this paper analysis the relationship between executive shareholding, R&D investment and corporate performance on the basis of the relevant theory through empirical test method.This article selects the manufacturing enterprises listed in Shanghai and Shenzhen's main board of 2011-2014 in our country as research objects, by multiple linear regression analysis, hierarchy regression analysis and grouping of regression analysis method, to compare the differences of relationship between R&D investment and the performance of enterprise in the condition of different proportion that executives shareholding holds in the companies. Based on the study of the relationship between the executives shareholding, research and development investment and enterprise performance, this article study the enterprises' executives shareholding proportion in different companies of the relationship between research and development investment and enterprise performance. The result proved that executives shareholding and research and development investment can significantly promote the enterprise's performance, and that corporate executives shareholding can significantly adjust the relationship between research and development investment and enterprise performance, and compared with lower executives shareholding enterprises, the higher executives shareholding enterprises' relationship between research and development investment and the corporate performance is more significant. At the end of the article, this paper combined the results of the empirical analysis with China's specific national conditions, and make suggestions to the listed companies and advised the companies to improve the executives shareholding proportion, increase the investment of research and development, strengthen the supervision of the stock market and perfecting relevant laws and regulations, which is of certain reference value to make decisions of executives shareholding proportion and R&D investment for the companies in China.