An Empirical Study On The Relationship Of The Executive Power, R&D Investment And Enterprises’ Growth

In today’s economic globalization, high-tech advances brought unprecedented opportunities and challenges to the enterprises. Technological innovation is increasingly being considered the key to keep the competitive advantage and long-term development in theoretical and practical fields. Facing with the increasingly tough competition in the new century, the listed companies have to enhance their market competitiveness through technological innovation, through R&D activities access to new technologies, new methods and new products to gain advantage, and then promote the sustainable growth. Especially for the rapid development of new energy industry.And it is also a highly technical industry. Technological innovation oriented with product research and development plays a decisive role in the growth of new energy industry. However, although a consensus was reached in theoretical and practical fields that R&D activities are very important, but R&D investment intensity in our country is still not high, and R&D investment gap between enterprises as well. Many scholars have done a lot of research from corporate management, aspects of internal features, external environment and other factors that affecting R&D investment intensity. But there are still some defects that they cannot explain the differences of R&D investment in same industry or sector between enterprises. Thus, scholars began to pay attention to executives, the board characteristics and other internal management factors, in particular the important role of executives. Thus, the relationship of the executive power, the R&D investment and enterprises’ growth are worth exploring.This study is on the basis of carding literature, and reference to the resource base theory, principal-agent theory, theory of executive power and enterprise growth theory. It selects listed companies of new energy industry in Shanghai and Shenzhen stock markets as research subjects. And through theoretical analysis and empirical research to the relationship among executive power, R&D investment strength and enterprises’ growth from executive power of four different sources and two different nature of listed companies by using the software such as SPSS21.0 and STATA12.0.The main results in the present study showed that:(1)executive power has a positive impact on enterprises’ growth, but it does not have a significant impact in the listed state-controlled companies;(2)executive power has a positive impact on R&D investment intensity, but it is not significant in the state-owned listed companies.(3)R&D investment intensity played an intermediary role between the executive power and enterprises’ growth. While in the non-state-controlled listed companies, R&D investment intensity played a full intermediary role between the executive power and enterprises’ growth. But in the state-owned companies, this intermediary role doesn’t exist. Based on the empirical results, this paper put forward several relevant proposals to optimize the executive power allocation, focus on R&D investment, and reduce administrative interference in state-owned enterprises and so on from executives, the enterprise itself and the government. Provide theoretical guidance and empirical basis for increasing the innovation capacity of enterprises and improving their enterprises’ growth.