Study On The Relationship Between The Ownership Structure, R&D Investment And Corporate Performance Of Listed Companies On GEM

With the transformation of China's economic structure,innovation has become an inevitable choice for China to change from "Made in China" to "Created in China."It is an irresistible trend for China to thoroughly implement technological innovation and lead to comprehensive innovation.In order to strengthen China's economic strength and support the development of small and medium-sized innovative enterprises,the GEM was formally established on October 23,2009.GEM companies have high R&D level and high growth characteristics.R&D is a long-term strategy and core competitiveness of the GEM company.Today,GEM has been established for nine years.GEM listed companies have also became a period of rapid development from the initial stage.The expansion of the company's scale has increased the segregation of the two powers of the GEM companies.Therefore,corporate governance is increasingly important for the GEM companies.As the foundation for corporate governance,the equity structure determines the basic structure of companies and the mode of development to the company.It also affects the company's related long-term strategic decisions.As the core competitiveness of listed companies on the GEM,R&D is also bound to be affected.There is a certain relationship between equity structure,R&D investment,and corporate performance.Judging from the past existing research,research between in the ownership structure,R&D investment and corporate performance was often based on the study of the main board market.And both are studies of the relationship between the two.There is little research on the integration of the three.Therefore,based on the 2012-2016 balance panel data of listed companies on GEM,this paper empirically examines the relationship between the two of equity structure,R&D investment and corporate performance,and the mediating effect of R&D investment on the relationship between equity structure and corporate performance.The results show that:(1)There is a significant positive correlation between equity concentration and company performance,executive holdings and company performance,institutional holdings and company performance.The higher controlling shareholder ' s shareholding ratio,the greater emphasis will be placed on supervising the conduct of management.The increase in executive holdings can effectively alleviate the agency problem.The more institutional holdings,the greater the degree of emphasis on corporate development.However,the result of the study shows that there is no significant correlation between the degree of equity balance and corporate performance.GEM companies have the characteristics of high technology and high growth,and their competition among industries is also becoming increasingly fierce.The shareholding checks and balances may reduce the operating efficiency of the company due to the mutual restraint of interests.Therefore,in the current stage,the effect of the shareholding balance on corporate performance has not been effectively reflected in the GEM;(2)There is a significant positive correlation between equity concentration and R&D,equity balance and R&D,executive holdings and R&D,institutional holdings and R&D.It reflects that the ownership structure can influence R&D investment of enterprises;(3)The R&D investment of GEM listed companies is significantly positively related to corporate performance.Through research and innovation,companies make the products inimitable,irreplaceable advantages,or reduce the cost brought by the improvement of production efficiency,and then make the company's performance can be improved.Moreover,the impact of R&D investment by GEM listed companies on corporate performance has a lagging effect.During the lag period,it significantly affects the level of corporate R&D investment.As a major corporate development strategy,R&D has long-term impact of business performance;(4)R&D investment of GEM companies has a mediating effect on the relationship between ownership concentration and corporate performance,executive holdings and corporate performance,institutional holdings and corporate performance.Finally,there are some suggestions combined with the problems existing in GEM and the results of empirical analysis.