Executives' Overseas Background,Analysts' Attention And Corporate R&D Investment

With the development of the time,the role of R&D in promoting the market economy is gradually known.The extensive development model is difficult to bring long-term development,only by opening up the source of R&D can it have an irreproducible competitive advantage.Consumer demand is constantly changing,companies need to make corresponding changes or even predict in advance,that is,a new arrangement of elements through R&D,so as to develop new products,open up new markets,and obtain economic benefits.Therefore,enterprises are the main R&D subjects,and those who do not or are unwilling to do will eventually be obliterated by the times.The key link affecting the R&D level of enterprises is the R&D investment,and it's influencing factors include external and internal factors.However,most of the decisions about whether to conduct R&D and how to coordinate investment of resources are made by the company's executives,which have a significant effect on the company's R&D activities.Different executives accumulate different human capital,and their education level and social experience will affect the decision-making of executives.Overseas returnees are a unique human capital,they have been exposed to more advanced and open education abroad,their professional knowledge structure is more complete,they have learned more about cutting-edge information on science and technology,and their support and understanding of corporate R&D investment may be different.In recent years,securities analysts have appeared in the public eye.They have practice qualifications,theoretical knowledge,and practical experience.They are responsible for transmitting the information they have mined to the market.Therefore,they will choose companies worth tracking according to market needs and their professional experience.In the long-term,they will pay attention to development dynamics,profitability,operating conditions,and strategic decisions of enterprises in order to analyze the value of the enterprise and then convey the internal deep information.The R&D decisions made by returnee executives are also closely monitored.From this,analysts can see the attitudes of returnee executives to R&D,predict the future prospects of enterprises,improve the accuracy of the market's true value assessment of companies and help investors to treat companies with R&D more rationally,which may affect the relationship between executives' overseas background and R&D investment.For the purpose of research,article takes China's A-share listed companies from 2009 to 2017 as the research object,explores the relationship between executives' overseas background and company's R&D investment intensity,and introduces the analyst's attention which act as external governance mechanism,and studies its relationship with the two whether there is a regulating effect on the relationship,and if there is a regulating effect,is it positive or negative.R&D investment data comes from the WIND database,and other variable data comes from the CSMAR database,and then the definitions and measurement methods of each variable are listed in a table,a measurement model is constructed,descriptive statistics are used by stata14 to describe statistical characteristics of main variables,adjusted variables and control variables such as maximum and minimum values,then perform correlation analysis to analyze whether there is serious linear relationship between variables.Finally,multiple linear regression is performed to obtain a series of results to verify the previously proposed hypotheses.In order to confirm the robustness of the results,regressions are re-regressed by changing the R&D investment of the explanatory variables and the measurement methods of the analysts attention,the results are not significantly different,indicating that the results are of reference significance.The overseas experience of executives generally includes learning and work experience,considering that the impact of different experiences on the formation of executive human capital may be different,and the effect on R&D investment will also be affected,Further research uses grouping regression contrast coefficients to explore whether there is a difference in the impact of overseas learning and work background on corporate R&D investment and provide empirical evidence to provide reference for the introduction of overseas.Based on the analysis of the empirical results,several conclusions are drawn:1.executives' overseas background will increase the company's R&D investment intensity;2.The analyst's attention has a positive regulating effect that the relationship between executive's overseas background and R&D investment;3.Executives with overseas learning background have a more positive effect on R&D investment than their work background.The results remain unchanged after the robustness test,and can be used for reference.The value of theory is to provide services for practice,so according to different issues,suggestions such as the government can formulate and implement preferential policies to further enhance the attractiveness of overseas talents,enterprises can build specialized overseas talent recruitment mechanisms,establish overseas recruitment department to scientifically and efficiently recruit high-quality overseas talents for enterprises,and can start from optimizing the analyst team and improving the professional qualities of the analysts,professional ethicsto optimize the analyst structure,hope to help the national innovation plan.Finally,it points out some shortcomings in this article,such as the insufficient classification of returnee executives' detailed features,and points out the improvements that can be made in future research to consolidate the relevant theoretical foundation.