The Impact Of Independent Director System On Enterprise R&D Investment

Innovation is vital to the development of the company,and the important performance of corporate innovation activities is R&D investment.Many companies listed on the GEM are high-tech companies,so R&D investment is even more important for such companies.China's GEM has been established for 10 years,and most of the listed companies have entered the stage of rapid development from the initial stage.Under the background of the knowledge economy era,with the gradual separation and degree of ownership and management of listed companies on the GEM,The corresponding principal-agent problem and information asymmetry problem will become more and more complicated,so the GEM listed companies need a more complete governance structure.As one of the important innovation mechanisms of modern corporate governance mechanism,the independent director system can better compensate for the shortcomings of the board of directors and the board of supervisors on corporate governance.Nowadays,China has implemented an independent director system for more than ten years.Scholars' research on the independent director system mainly focuses on the influence of the size,incentive characteristics,background characteristics and reputation characteristics of independent directors on company performance and corporate governance.Many research results show that by hiring external directors with professional knowledge and independent of shareholders and management,it is beneficial to alleviate the problem of principal-agent problem and information asymmetry of the enterprise.That is,the independent director system has a good effect on corporate governance,but the outside world From time to time,various skeptics have also been raised,and the independent director system has not played a valid role in corporate governance.This paper examines the effectiveness of the independent director system on the R&D investment of enterprises,verifies the effectiveness of the system,enriches relevant research content,and improves the independent director system in China,and proposes corporate governance for GEM listed companies.Some useful suggestions.The article first sorts out the relevant research of the predecessors,through theoretical analysis and puts forward corresponding hypotheses,and then selects the panel data of the non-financial companies listed on the GEM in 2012-2016,taking the enterprise R&D intensity as the proxy variable of the R&D investment of the enterprise.Using the proportion of independent directors as the proxy variable of the independent director system,and finally constructing a model to conduct multiple regression analysis on the whole sample data;then,according to the size of the board of directors,equity balance,marketization process,regression test,trying to take multiple angles Departure to explore the impact of the independent director system on corporate R&D investment.The main conclusions of this paper are as follows:(1)The total sample regression results show that the proportion of independent directors has a significant positive impact on the R&D investment of enterprises.(2)According to the size of the board of directors,the results of the regression show that the proportion of independent directors has a significant positive relationship with the R&D investment of enterprises.(3)According to the regression results of the equity balance,it is found that in the enterprises with high equity balance,the proportion of independent directors has a significant positive relationship with R&D investment.(4)According to the marketization process,the regression results show that in the enterprises with high marketization process,the proportion of independent directors has a significant positive correlation with the impact of R&D investment.Through the conclusions of the above empirical analysis,it can be clearly seen that the independent director system has played an effective role in corporate governance in China.In the process of business development,due to the influence of its internal governance level or the external environment of the enterprise,it can effectively enter the board of directors by introducing external directors with professional knowledge as a third party.Prevent internal control and avoid the company's controlling shareholder and other directors within the board of directors or the company's management colluding with each other to harm the company's interests,the interests of small shareholders and other stakeholders,and help the company optimize internal governance.Mechanism and improve corporate governance,so that enterprises can grow and develop better.Finally,this paper suggests,first,to further improve China's independent director system,in the original provisions of the listed company's board of directors,the proportion of independent directors should at least include one-third of the basis to continue to increase the proportion of independent directors,while establishing a standardization The independent director employment system;Second,listed companies should continuously improve the company's internal governance level,optimize the company's governance mechanism,so that the company has a smaller board size and avoids the excessive concentration of equity to create a single shareholding structure;third,Actively promote market-oriented reforms and create a good external business environment for enterprises.