Product Market Competition,Institutional Holdings And Corporate R&D Expenditure

Enterprises carrying out research and development activities can promote technological progress,improve market efficiency,and promote economic development.Especially in the context of increasingly fierce competition,innovation activities are very important for the survival and development of enterprises,and they are also a key factor in the smooth implementation of national innovation strategy.In recent years,China's capital market has continued to grow in a standardized and orderly direction,it has built a stable and excellent platform for institutional investors.With the expansion of the institutional investor team and scale,more and more experts have begun to pay attention to its role in corporate governance.Institutional investors are generally considered to have a professional invest analysis team.In some respects,such as information acquisition and risk aversion have strong advantages,so they have a significant impact on corporate governance.As a major aspect of strategic decision-making,R&D investment is affected by institutional investors' shareholdings.Different institutional investors have different risk appetite,independence,business philosophy,etc.,will these affect their effect on R&D investment?Product market competition,as the external environment on which business operations depend,is bound to affect internal behavior,including investment decisions.Under the influence of this external mechanism,does the role of institutional investors in R&D investment activities change,and what changes occur?These questions deserve our deep thought.Taking the 2011-2017 GEM listed companies as a sample,this paper deeply analyzes the impact mechanism of institutional investors' shareholdings on R&D investment,and divides institutional investors into independent and non-independent types,based on their respective differences in corporate governance,the paper explores the different roles of R&D investment,and on this basis,examine the impact of product market competition and institutional investors interactions on R&D investment.The study found that:(1)institutional investors can effectively promote R&D investment,and institutional investors have the motivation-the value creation effect and the ability-take advantage of their own advantages to influence R&D investment activities.(2)Independent institutional investors can play the supervisory role of external shareholders and promote R&D investment,while non-independent types are restricted by the commercial interests of each other and have no significant impact on R&D investment.(3)Under the regulation of product market competition,not only independent institutional investors will significantly promote R&D investment,but non-independent types will also have a positive impact on R&D investment.Finally,based on the research conclusions of this paper,providing some suggestions for the government and enterprises about introducing institutional investors and innovative talents,creating fair market competition,and increasing R&D investment.This paper not only enriched the research on institutional investors and innovation theory at the theoretical level,but also provided new ideas for enterprises to increase their R&D investment and government macro-regulation.