Management Entrenchment、Internal Control Management And R&D Investment On Enterprises

The global division of labor more and more fine,economic integration continues to deepen,and market competition is more and more intense。Enterprises in order to gain a favorable position in the competition,we must strengthen the technological innovation capability,China has also been building an innovative country as a long-term goal.R&D investment as a core part of innovation activities,can effectively enhance the core competitiveness of enterprises.But Xuan Zhaohui et al(2013)study found that most of our enterprises R&D investment intensity is generally low.Which makes how to increase the intensity of R&D investment,has become the focus of most scholars.Operators are often faced with the pressure of internal and external mechanisms,will choose to maintain their own job safety and the pursuit of their own interests to maximize the behavior,which is management defense.Taking into account the current research is not yet comprehensive,I try to study the impact of management defense on R&D investment,while considering the relationship between management defense and R&D investment,internal control is a factor that can not be ignored,but so far,the three are not linked together in the literature.Therefore,this paper takes manager management defense as the research perspective,and studies the internal control quality and the internal control defects and the repair angle from the two aspects of internal control governance,and finds out the inherent relationship between manager management defense and R&D investment intensity.Based on the A-share quoted companies in china from 2010 to 2016,this paper tries to study how the internal control management affecting the relationship between the management entrenchment and R&D investment on enterprises at the transition economic environment.The study found that the management of defense will inhibit investment in R&D intensity,however,after the introduction of internal control management,internal control that has a high quality can help to alleviate the inhibitory effect of management defense on R&D investment.And the internal control deficiencies exacerbate the degree that the management of defense will inhibit investment in R&D intensity,but after the defect repairing,the degree of inhibition was alleviated.The research shows that the manager's own factors have important influence on the investment of enterprises,but this effect is subject to R&D investment in the long-term development of the role of the enterprise.And it is subject to thecondition of the enterprise internal governance to relieve and improve the ability of principal agent,highlighting the important significance of strengthening the scientific decision-making of R&D investment and the construction of internal control.