CEO Expected Tenure,Independence And R&D Investment

Scientific and technological innovation is the engine of economic development.In the past two years,a series of policies to encourage scientific and technological innovation have been issued at the national level,and the strategy of driving innovation has been written into the government work report.19 th CPC National Congress' s report also attaches great importance to innovation strategy,which holds that innovation is the first driving force to realize the transformation and development of the country.The report also emphasizes science,technology and innovation many times,which fully reflects the state's concern for innovation.As the main body of innovation,how to improve the ability of independent innovation in order to promote the economic growth from resource factors driven to innovation-driven transformation,is the focus of economic development in this period.In July 2017,the State Council issued the opinions on strengthening the implementation of the Innovation-Driven Development Strategy to further promote the in-depth development of mass entrepreneurship,clarifying the role of mass entrepreneurship and the incentive role of mass innovation for enterprise R & D innovation.It is also intended to encourage large enterprises to play a leading role,increase investment in R & D,and stimulate their creative potential.Schumpeter,a famous economist,believes that entrepreneurs are the real "main bodies" of innovation activities.The main role of entrepreneurs is to continuously improve the level of innovation.As an important part of corporate governance structure,the personal characteristics of CEO play an important role in enterprise innovation.The conflict with minority shareholders is becoming more and more serious.Large shareholders and CEO jointly control the management of the company,and the independence between CEO and major shareholders also affects the R & D innovation of the company.Therefore,this paper will proceed from the perspective of the degree of heterogeneity of CEO independence.To investigate the impact of expected tenure of different types of CEO on R & D investment.In this paper,from 2011 to 2015,China's Shanghai and Shenzhen A shares of listed companies as a sample,the degree of independence of CEO as a moderator,to investigate the effect of CEO on R & D investment expected term.This paper firstly reviews China's R & D investment theories,clarifies the purpose and significance of this research.Then,using the basic theory the analysis puts forward the research hypotheses,multiple regression model,the impact of building CEO expected tenure on R & D investment;then,Using Stata statistical software for the descriptive statistical analysis of variables;finally,this paper uses panel data analysis method of the collected data were analyzed by multiple regression,the expected CEO term,empirical test of relationship between independent and enterprise R & D investment and the conclusion of the study.The results show that CEO expected tenure and R & D investment are positively related,and in non state-owned company It is more significant.According to the independence degree,CEO is divided into three types,one is dependent type and the other is independent type.Based on the empirical analysis,it is found that the independence of CEO strengthens the impact of expected term on R & D investment.These conclusions have some enlightening significance for improving the efficiency of enterprise investment and perfecting the corporate governance structure,and provide the theoretical basis for the selection and appointment of managers.On the one hand,it is helpful to increase the investment in R & D of enterprises.Improve the future development potential of enterprises.At the same time,tend to be younger in the selection and employment of management,reduce short-sighted behavior in R & D investment,thereby increase R & D investment and innovation.On the other hand,It is helpful to improve the corporate governance mechanism,the training mechanism of professional managers and the reputation evaluation mechanism,to improve the independence of CEO of listed companies,to encourage other shareholders to participate actively in corporate governance,and to play a role of checks and balances on large shareholders.And then enhance the future competitiveness of enterprises.