Research On The Relationship Between Equity Concentration,R&D Investment And Financial Performance

The report of the 19 th National Congress pointed out that China's economy is transitioning from a high-speed growth stage to a high-quality development stage.Innovation as the first driving force for development is an important strategic support for building a modern economic system.As the main body of market behavior for technological innovation,enterprises are the backbone of accelerating the construction of an innovative country.Enterprise innovation activities are not only restricted by the external environment,but also by corporate governance mechanisms.Because the goals between corporate stakeholders are difficult to be compatible,it is easy to trigger the principal-agent problem under the modern enterprise system.The shareholding ratio of shareholders will affect their supervision and restraint to managers,which will affect the decision-making of managers on R&D investment activities,and ultimately affect the financial performance of enterprises.As an important part of the corporate governance structure,a reasonable shareholding structure can alleviate the principal-agent contradiction to a certain extent,optimize R&D investment decisions,and improve the level of technological innovation.Although the increase in R&D investment is conducive to enterprises to improve the level of technological innovation,to effectively improve the financial performance of enterprises requires an effective corporate governance mechanism to effectively manage R&D investment activities.The concentration of ownership is a concentrated reflection of the rights and obligations of corporate stakeholders,and it is necessary to pay attention to the impact of equity concentration on R&D activities.The information technology industry is a strategic industry in China and a technology-intensive industry that can better reflect China's innovation capabilities.Therefore,this paper takes the listed companies in the information technology industry as the research object,and uses the data model and panel threshold method to analyze the relationship between equity concentration,R&D investment and financial performance in the information technology industry.The empirical research shows that: 1 Information technology industry listed companies The R&D investment has a positive correlation with financial performance,but there is a certain lag,indicating that R&D investment has to be long-term to improve the competitiveness and financial performance of the company.2 The R&D investment of listed companies in the information technology industry and the shareholding ratio of the largest shareholder showed a “ U ” relationship with adecline and a rise,indicating that moderate equity dispersion and absolute concentration have a positive impact on the R&D investment of the company.Different internal corporate governance and agency costs are different when the concentration of ownership is different.The expression of private shareholders' pursuit of private benefits of control changes with the change of shareholding ratio,which has different effects on the R&D activities of enterprises.3 The concentration of ownership of listed companies in the information technology industry has a positive adjustment effect on the relationship between R&D investment and corporate financial performance.It shows that with the increase of the shareholding ratio of the first shareholder,the major shareholder will pay more attention to the long-term development of the enterprise,while the major shareholder The constraints and supervision of enterprise managers enable the effective control of managers' self-interested behaviors,which is conducive to the promotion of R&D projects and thus the financial performance of enterprises.