Research On The Relationship Between TMT Characteristics,Institutional Investor's Shareholding And Enterprise R&D Investment

Science and technology is popular,and it will elevate the status of the country.With the increasing awareness of science and technology innovation in our country,the government has also paid more attention and input more to technological innovation.Under the policy environment with strong support for innovation,enterprises,as the main body of market economy,should also be the main force of scientific and technological innovation.Therefore,technological innovation is not only an important way to achieve great development,but also plays a significant role in improving national status and enhancing international influence.The development strategy deployment of enterprises is composed of many internal and external factors.However,as the ultimate decision-maker of R&D activities,the overall coordination and coordination ability of the executive team influences the innovation efficiency of the team.Specifically,the hidden experience,values and cognitive abilities behind the TMT characteristics are the direct factors that influence whether the enterprise is engaged in R&D investment and whether it can provide stable support for it.In recent years,the study of TMT characteristics are mainly concentrated in age,sex,educational background and term from several aspects,this article selects executives'term and pay two dimensions,to investigate whether the TMT characteristics can effectively motivate investment in research and development.With the continuous development of China capital market and financial system gradually perfect,the institutional investors on the capital market in China is also increasingly prosperous,with the growing stake,it plays a very important role.Institutional investors with information advantage,scale,specialization,have to pay more attention to the long-term development of the enterprise value,promote the competitiveness of the enterprise investment project to alleviate the agency problem of the enterprise,and increase the investment of R&D activities.Compared with institutional investors,the management is subject to pay more attention to the short-term interests of the enterprise,which can easily lead to the principal-agent problem.How to motivate managers to play the role of institutional investors and to align them with the interests of shareholders becomes a question worth thinking about.Based on this,this paper takes a-shares in Shanghai and Shenzhen as the research object,examines the influence of TMT characteristics and institutional investors' shareholding on enterprise R&D investment,and explore the regulatory effect of institutional investors on TMT characteristics.The research content of this paper has important theoretical significance and practical value to improve the level of enterprise R&D.This paper use Shenzhen and Shanghai A-share listed companies between 2007-2016 data as a sample,the study found:(1)Executive tenure and salary have an incentive to invest in R&D.(2)The stock ownership of institutional investors can enhance the enterprise's research and development level.(3)Institutional investor holding will restrain the promotion effect of TMT characteristics on enterprise R&D investment.The content of this article includes the following six parts:The first part is an introduction.Firstly,this part mainly expounds the research background and significance of the paper.Secondly,the research objectives,research contents and structure of the article are briefly introduced,and the research methods and possible innovations used in this paper are pointed out.The second part of the literature review.The research results related to the TMT characteristics at home and abroad and the relationship between institutional investors' shareholding and enterprise R&D investment are analyzed.The third part is theoretical analysis and research hypothesis.This part first defined the main concepts of this article,including the characteristics of executives,institutional investors and R&D spending,through the upper echelon theory,principal-agent theory,incentive theory and stakeholder theory,analyzing the characteristic of the executives,institutional investors holding and the relationship between corporate R&D input,thus put forward the research hypothesis of this paper.The fourth part is research design.This part mainly describes how to select data and define relative variables,and finally designs the model according to the hypothesis proposed.The fifth part is empirical results and analysis.First,a descriptive statistical analysis was performed for the sample,and then a correlation analysis was performed for the variables.Then,the model designed in this paper is used to test the relevant hypotheses.Finally,the results of regression analysis were verified by robustness test.The sixth part is research conclusion and recommendations.On the basis of the empirical results in the fifth part,this paper summarizes the research conclusions and puts forward Suggestions,points out the shortcomings of this study and puts forward the direction of improvement.On the basis of the existing research,this paper has carried on the following two innovations:(1)This paper is innovative in its research content.This paper examines the impact of executive positions on the technological innovation of enterprises,improves their research and development level,and provides more convincing suggestions for improving the technological innovation ability of enterprises in China.(2)This article creatively put TMT characteristics,institutional ownership and corporate R&D into the same research framework,explores the influence of institutional investors on the TMT characteristics and the relationship between R&D investment of enterprises,which is a beneficial supplement to the research on the factors influencing enterprise R&D.