The Influence Of Company's Ownership Structure On R&D Investment-Based On Growth Enterprise Market

The 18 th CPC National Congress proposed the strategy of innovation-driven development based on the situation at home and abroad.Innovative development is the way to go in the context of international competition,realize the rejuvenation of the Chinese nation,imperative for China at the current stage.Therefore the strategy of innovation-driven development must be placed at the heart of the country's development.R&D investment has increased in recent years in china,it shows that our country attaches more importance to innovation development.As we are far behind the western countries,we must make efforts to promote R&D investment.The Growth Enterprise Market is the place which clusters innovation power,so it is of great importance to improve R&D investment in GEM.Principal-agent theory is the dominant western corporate governance theory.Modern principal-agent originated in the enterprise division of labor.In the company,the classic principal-agent relationship refers to the relationship between the shareholders and managers.Fugen Feng(2004)showed that Chinese companies' equities are always relatively concentrated or highly concentrated.So he proposed double principal-agent theory.The first kind of principal-agent relationship exists between controlling shareholders and managers.The second kind of principal-agent relationship exists between controlling shareholders and minority shareholders.Due to conflicts of interest and asymmetric information in the principal and the agent,the process of decision-making will lead to conflict.Because of the characteristics of the R&D activities,it will cause the first and the second agency problem in corporate governance.So optimize the enterprise ownership structure will increase R&D investment.As to the research method,this paper combines both theoretical study and empirical study,giving suggestions on improving the ownership structure and innovation in a more comprehensive way.In the theoretical study,this paper gives new aspects on the elements influencing the ownership structure and divides them into two parts,the inherent ones and the external ones.In the end,this paper gets back to the companies listed in the GEM,and studies the influence of the ownership structure in the GEM on the innovation investment.In the empirical study,the paper concludes the three elements of ownership structure: ownership concentration,equity balance degree and ownership property.Given the hypothesis proposed,this paper collects data of 457 listed companies on GEM during the period from 2009 to 2015 in the CSMAR and the Wind,uses stata13.0 as the data procession tool to establish six multiple regression models through two aspects of random effects and fixed effects to demonstrate regression results.The structure of this paper mainly divided into the following six parts:The first part is the introduction.R&D is very important for countries and enterprises,so the GEM listed companies need to increase R&D investment.In decision-making level,they need to solve the double principal-agent problems.It is meaningful to study the influence of company's ownership structure on the R&D investment.Then the research methods,the research structure and the research innovations are being introduced.The second part is the literature review.Resort to the logical structure from big to small,lay a theoretical basis for expansion of the empirical analysis.The third part is the theory analysis and the research hypothesis.To clearly define the R&D investment and ownership structure,this paper presents the principal-agent theory and double principal-agent theory,put forward six hypothesis.The fourth part is the research design.I collected data of 457 listed companies on GEM during the period from 2009 to 2015 and established six multiple regression models.The fifth part is the empirical analysis.Demonstrate regression results through two aspects: random effects and fixed effects,and do the robustness test to ensure the validity of the results.The sixth part is the conclusions and suggestions.From the theoretical study and empirical study,this paper comes to the following conclusion for the companies listed in the GEM:(1)ownership concentration has an inverted U relationship with innovation investment.When the equity is dispersed,increase the equity concentration,reduce the cost of the supervision of the shareholders,restrain managers' short-termism,to increase R&D investment;(2)the biggest shareholder's ratio has a negative correlation with innovation investment,The controlling shareholder is likely to make an arbitrary decision to decrease R&D investment.While the second to the tenth shareholder's ratio has a positive relation with innovation investment,the higher the degree of ownership,the more the R&D investment;(3)state-owned equities decreases the R&D investment in a remarkable way.In the state-owned enterprises,one-side manipulation is more conversely related with R&D investment.This paper has further innovation in the research content,research subject and research design.In the research content,on the basis of the existing literature,summarizes the comprehensive classification of ownership structure.In the research subject,this paper narrow the scope to the ownership structure of a company,which listed on GEM,and at the same time,expand the quantity of the sample both in time and in space,improving the effectiveness of the panel data.In the research design,based on previous studies,this paper adds interaction items of the explaining variables and more controlling variable,improving the model and making it more convincing.However,this paper still has some deficiencies.Firstly,Data selection is not so strict,which means the differences between the data comparison is being ignored.Secondly,monopoly,which is a very important controlling variable,is not discussed in the empirical study due to the fact that it is hard to access the data.