Research On The Relationship Between Equity Ownership Structure And Corporate R&D Investment Under Different Property Rights

In recent years,the development of the stock market has improved the function of the ownership structure on corporate governance and deepened the influence of the former on the latter,especially on corporate technological innovation.At the same time,this mechanism of action is inevitably affected by the nature of corporate property rights.Under the situation of slowing economic growth and the urgent need of innovation to increase economic vitality,exploring the influence of equity structure on the technological innovation investment of enterprises under the different property rights has become the focus of improving corporate governance and inspiring corporate technological innovation.Through the investigation of literature both at home and abroad,we find that few scholars in the study of the relationship between equity structure and corporate governance are based on the same impact mechanism,and consider the impact of industry differences to compare and discuss the relationship between equity structure and corporate R&D investment under different property rights.This paper considers the differences in the characteristics of private enterprises and state-owned enterprises,and takes China's manufacturing listed companies as the research object,based on the same impact mechanism,it discusses the influence of equity structure and equity incentives on corporate R&D investment.First of all,we through theoretical research to explore the relationship between the ownership concentration,the proportion of institutional holdings,management equity incentives and R&D investment in general form.Secondly,we investigate the influence of China's national conditions,the development of the manufacturing industry and the degree of the development of the stock market on the relationship between the research objects,and on the basis of this,we put forward the research assumptions in line with the reality of our country.First,the ownership structure has an impact on the technological innovation of private enterprises,but the political nature of state-owned enterprises will weaken the role of the ownership structure;Secondly,centralized shareholding structure can bring about the synergistic effect of large shareholders and corporate interests.Large shareholders often pay more attention to corporate performance and development due to their larger shareholdings,while large shareholders often have relatively professional management capabilities and market judgment.However,the political nature of state-owned enterprises will weaken the influence of ownership concentration on corporate R&D investment.Third,this article believes that the purpose of institutional investors' investment is to obtain the difference in the stock trading price.Considering the time costs of investment,institutional investors tend to pay more attention to the short-term performance of enterprises,and reject projects that require long-term investment such as technological R&D.Institutional investors have the ability to force management to act according to their wishes by selling stocks.However,the political nature of state-owned enterprises suppresses the intervention of institutional investors in business operations.Instead,it increases the stock liquidity and capital scale of state-owned enterprises and has a positive relationship with corporate R&D expenditures;Fourth,this paper argues that there is a conflict of interest between managers and owners in the case of separation between ownership and management rights of modern enterprises,and the compensation and benefits of managers are mostly determined by the short-term operating performance of the company.This led management to attach universal importance to the company's current earnings more than technological innovations,and at present,the actual amount of shares held by the management in China is very small,which is not enough to inspire management's owner's awareness.Therefore,we put forward the assumption that management shares are negatively related to corporate R&D investment.Then,through the sample selection and variable definition,we establish the multiple regression equation to test,we selects panel data for 25 manufacturing state-owned and private enterprises from 2007 to 2015.We use the technological innovation input of enterprises as the explanatory variable,the concentration of ownership,the proportion of institutional holdings,and the proportion of management holdings as the explanatory variables.The company's scale,corporate value,profitability,growth,asset liquidity,investment in fixed assets,and the age of listing of the company are the controlling variables.Finally,determine the nature of the property right have effect to the relationship between the ownership structure and the enterprise R&D investment.The degree of ownership concentration in China's private manufacturing listed companies is positively related to corporate technological innovation,but the political nature of state-owned enterprises has weakened this correlation;Institutional holdings of private enterprises are not conducive to corporate R&D investment,but there is no significant positive correlation between institutional ownership and R&D investment in state-owned enterprises;At the same time,management's shareholding does not provide an incentive,and it even motivates management to increase current-account surpluses and reduce corporate R&D expenditures in order to obtain a share price spread.Finally,based on the theoretical and empirical results,we put forward suggestions which helpful to stimulate innovation power of enterprises and improve their technological innovation level.First,the government should expand policy guidance and incentives for technological innovation of enterprises;secondly,for private enterprises,the government should improve the construction of capital market laws and regulations,and at the same time,enterprises should diversify and individualize management incentive programs;Third,for state-owned enterprises,a state-owned enterprise research reserve fund system should be established;and technical innovation achievement indicators should be incorporated into the management evaluation system.