Research On Internal Control Environment, R&D Investment And Innovation Performance Of Family Business

At this stage,China's economy is undergoing an important period of transformation.Under the background of the new normal economic development,we must promote technological transformation and upgrading of industrial structures through technological innovation and provide a driving force for sustainable economic development.As the main body of economic development,enterprises must comply with market demands and achieve sustainable development.It is inevitable that innovation will drive industrial transformation and upgrading and continuously enhance the effectiveness of innovation strategies.After the reform and opening up,China's family-owned enterprises have been developing rapidly for more than 30 years,and have played an increasingly important role in solving population employment and upgrading China's economic development indicators.It has become a powerful driving force for economic development.Therefore,it is necessary to study the innovation consequences of family businesses.R&D investment is the driving force and source of innovation activities,and it is the dominant influence factor of corporate innovation performance.As a key indicator to evaluate the consequences of innovation activities,innovation performance is a company's concern in innovation activities.However,in the study of the consequences of corporate innovation activities,we should also consider other hidden and important factors in addition to those that directly and more explicitly affect corporate innovation performance.For example,the company's internal control environment.The internal control environment is the basis for effective internal control.If the internal control environment is of poor quality,no matter how well the internal control system is designed,it will be difficult to achieve the control objectives because the foundation is not solid,and then affect the innovation performance of the enterprise^[1].In the existing research literature,the literature on empirical research on innovation performance from the perspective of internal control of general enterprises is very limited.However,there is still no literatures that take the family business as the research subject on the combination of the two as the research subject.Then,for the family business,how does the quality of internal control environment affect its innovation performance,and how this impact is achieved,and how the relationship between internal control environment quality,R&D investment and innovation performance is the main content of this paper.This study takes a sample of 507 family companies listed on the Shenzhen Stock Exchange A-share as of December 31,2014,and constructs an evaluation system for the internal control environment quality of family-owned enterprises.Quantify the key indicators of the quality of internal control of family-owned companies by adopting a method of scoring specific indicators of the evaluation index system.And then in the empirical part,were studied the relationship between internal control environment quality and innovation performance of family-owned enterprises,the impact of first-level variables in the evaluation index system on innovation performance,and relationship among R&D investment,internal control environment and innovation performance.The research results show that there is a significant positive correlation between the quality of internal control environment and innovation performance in family companies.This positive correlation is achieved through the combined effects of corporate governance and social responsibility.R&D investment has a positive regulatory effect on the relationship between internal control environment quality and innovation performance.The conclusion of this study not only enriches the existing research literature of the family enterprise's technological innovation and internal control,but also provides ideas for the family enterprise to enhance the enterprise's innovation performance from the perspective of the internal control environment.It has important theoretical and practical guiding values.