Research On The Impact Of Equity Check And Balance On Enterprise R&D Investment From The Perspective Of Dual Agency Cost

Economic development is inseparable from innovation and unswervingly implements the innovation-driven development strategy.It is related to the success or failure of China's economic transformation and China's core competitiveness in the future of the world's economies.Therefore,it is necessary for enterprises to increase their support for technological innovation.Throughout the recent years,the amount of R&D investment of Chinese enterprises has been greatly improved in terms of quantity,but the R&D investment intensity is still far from the international standard.Therefore,it is of great significance to study the factors affecting R&D investment of enterprises.There are serious second-class agency problems in Chinese listed companies,and there are many cases in which controlling shareholders infringe on the interests of other shareholders,which has adverse consequences on the relevant economic decisions of enterprises.Therefore,it is necessary to construct a scientific and reasonable equity structure to suppress the occurrence of such behaviors.The balance of stocks refers to the fact that control is spread among multiple shareholders,through internal restraint,mutual supervision and mutual checks and balances,so that they can participate in company decision-making but make the company not only allow a major shareholder to control the ownership structure separately.There is no single controlling shareholder within the company with perfect balance of checks and balances.Therefore,the company's decision-making needs to be negotiated through the entire shareholder team with control,so it can help to make the most reasonable and most beneficial to the company's interests.Decision making.The existing literature does not reach a consensus on whether the equity checks and balances affect the R&D investment of enterprises.Based on the information asymmetry theory and principal-agent theory,combined with the current situation of Chinese enterprises,this paper takes the data of China's manufacturing listed companies from 2007 to 2016 as the research object,and discusses the balance between equity and enterprise R&D investment through theoretical analysis and empirical test.The relationship and further analysis of the differential impact of equity checks and balances and R&D investment in different enterprise categories,and then analyzes the ways in which equity checks and balances affect the R&D investment of enterprises.The study found that:(1)equity balance is positively related to enterprise R&D investment;(2)The mediation effect test shows that the second type of agency cost plays a partial mediating effect in the role of equity checks and balances in promoting R&D investment of enterprises.Equity checks and balances can reduce the second-class agency costs of enterprises by inhibiting the short-selling behavior of controlling shareholders,thus affecting R&D.decision making.(3)The mediating effect of the first type of agency cost on the role of equity checks and balances in promoting technological innovation investment in enterprises is not significant.The conclusion of this paper not only verifies the effectiveness of equity checks and balances on corporate governance,but also finds the influence path of equity checks and balances to promote R&D investment of enterprises,and provides a reference for enterprises to construct a reasonable governance structure to promote technological innovation,and optimizes the shareholding structure.The corresponding policy recommendations are proposed from the perspective of designing and improving the protection mechanism for small and medium shareholders.