Board Governance,R&D,and Business Performance

The report of the 19th National Congress of the Communist Party of China pointed out that in the process of development in the new era,we must uphold and develop socialism with Chinese characteristics,from a new perspective,change the original mindset and take"innovation,coordination,green,openness,sharing" as a new concept to promote economic and social development.Innovation is an important way for a company and an industry to maintain its core competitive advantage.Its efficiency depends largely on the scientific decision-making of R&D investment and is the key to improving business performance.Board governance is the core of corporate governance.In the process of modern industry development,board governance plays a vital role in the growth of the company.Good board governance is the scientific of R&D decisions,the improvement of business performance and the development of the whole society.There is a promotion.Compared with traditional industries,the information technology industry relies more on capital and technology,mainly engaged in innovation and entrepreneurial activities,which determines that the information technology industry needs a matching board governance structure.Therefore,the governance of the board should correspond to the characteristics of innovation,in order to promote the innovation ability of information technology enterprises,and thus improve business performance,which can not only better apply the board governance theory in the field of innovation economics,but also the new normal background of the economy.The development of the information technology industry provides some policy references.Based on the data of 56 listed companies in the information technology industry from 2011 to 2017,this paper uses multiple regression analysis methods to systematically examine the relationship between board governance,R&D investment and business performance.Firstly,based on the related literature review and innovation,principal-agent theory,the paper analyzes the impact mechanism of R&D investment on the business performance of information technology industry.Secondly,it studies the process of board governance in the process of R&D investment affecting the performance of information technology industry.Based on the mechanism of regulation,the research hypothesis of this paper is proposed.The empirical results show that R&D investment has a significant positive impact on the business performance of the information technology industry;the board of directors' shareholding ratio and the leadership structure of the board of directors significantly positively regulate the relationship between R&D investment and the performance of the information technology industry;the proportion of independent directors is significantly negative To adjust the impact of R&D investment on business performance;the size of the board of directors has a homogenous adjustment effect on the relationship between R&D investment and business performance;the regulation of board behavior is not significant.Finally,based on the empirical results,the countermeasures and suggestions are put forward from the aspects of rational allocation of R&D investment,improvement of board governance to improve the performance level of information technology companies.