Research On The Relationship Between Equity Balance Degree,R&D Investment And Firm Performance

With the rapid development of the world economy,the economic exchanges between countries become more and more frequent,the enterprise has the development opportunity,but also face the increasing competition pressure.Scientific and technological innovation plays a more and more important role in the increasingly fierce market competition and international competition.R&D investment to a certain extent represents the ability of science and technology innovation,to enhance the competitiveness of enterprises,improve the performance of enterprises play an important role.Therefore,the R&D investment has aroused wide attention of many scholars both at home and abroad.A large number of studies have found that the efficiency and effectiveness of enterprise innovation is greatly affected by the intensity of R&D activities,thus affecting the performance of enterprises and the future development.Therefore,this article revolves around the construction of reasonable ownership structure,increase the effective R&D investment,and ultimately improve the business performance of the problem.Equity balance is an important indicator of the company's equity structure.Equity balance refers to a number of large shareholders can jointly own the power to control the company,any major shareholders alone can make a firm decision,thereby inhibiting the individual shareholders to seek private interests behavior and to reduce the agency cost and protect the interests of small shareholders,to ensure the managers to make investment decisions that are consistent with the interests of the enterprise.Therefore,this paper analyzes and studies the relationship between equity balance degree and R&D investment and enterprise performance has important theoretical and practical significance.This paper from the growth situation of current our country business enterprise board of reading related literature at home and abroad and the theoretical basis,using the research method of combining the normative research and empirical research,of gem in China in 2010 to 2014,in corporate annual reports disclosure of R&D investment data and equity balance degree data of enterprise,analysis of equity balance degree,corporate R&D investment strength and enterprise performance three between relations.The process of empirical research,equity balance degree is the core of the research,also introduced the variable,the ratio of R&D intensity by R&D expenses and operating income to measure the performance of enterprises,with the rate of return on net assets to measure and study the relationship between the three,draw the following conclusions:(1)the equity balance degree and investment in research and development showing a positive correlation with the degree of equity balances increased R&D intensity will be enhanced;(2)R&D investment and enterprise performance has a positive correlation,along with the increasing strength of corporate R&D investment,enterprise performance will be significantly improved;(3)equity balance degree of relationship between R&D investment and enterprise performance showing a positive regulatory role,equity balance degree helps enterprises to increase R&D investment activities,so as to improve business performance.Finally,through the correlation test analysis of the empirical results the conclusion of this paper,according to the conclusion,the thesis puts forward some suggestions,and points out the deficiencies existing in the research and gives an outlook of the future research.Through the study of this paper,in order to can for China's enterprises to improve the efficiency of R&D investment and increase core competitiveness are required to construct the optimal ownership structure is put forward in a theoretical basis,for more enterprise optimization ownership structure and R&D investment share some practical guidance meaning.