Family Involvement, Corporate Governance And R&D Investment

Family business is an important part of China's private economy,and its contribution to China's GDP is constantly increasing.However,Chinese family businesses generally have a short life span.How to overcome this inherent disadvantage and how to carry out corporate transformation and upgrading to achieve sustainable development has gradually become the focus of research by relevant scholars.In view of the access to relevant data of Chinese family businesses,this article selects listed family businesses as the research object,and conducts research from the unique“family characteristics”(two dimensions of ownership involvement and management right involvement)of family businesses to realize family businesses The long-term foundation and long-term development of the foundation provide practical development suggestions.With the full implementation of China's innovation-driven development strategy,related research funding has been increasing year by year,China's innovation environment and R&D strength have been further improved and enhanced,and the level of science and technology and innovation driving forces have been continuously strengthened.Long-term development provides more opportunities and challenges.As an important part of China's private economy system,family companies naturally need to respond to the motherland's call,continuously accelerate technological capability innovation,find innovation breakthroughs,give play to the role of scientific and technological innovation in guiding the strategic transformation and upgrading of enterprises,and further implement the innovation-driven development strategy.At the same time,in order to overcome the inherent disadvantages of family businesses,it is also necessary to rely on technological innovation for strategic transformation and upgrading.Therefore,this article starts from the unique "family characteristics" of the family business,and studies the impact of the two-dimensional involvement of family ownership and management rights on the company's R&D investment.The stable development of China's private economy provides strongsupport.At present,Chinese family businesses are in the period of passing on the "baton".The important task of maintaining the long-term development of family businesses is about to be delivered to the second-generation family heirs.This article can also provide second-generation heirs including business product transformation and upgrading,internal management structure adjustment,Thoughts and suggestions on the implementation of scientific and technological innovation development strategies.This article is based on the theory of agency theory,social emotional wealth theory,etc.First of all,it sorts out the literature on the definition of family business,family involvement dimension,research and development investment,the source of enterprise managers and the concentration of equity,etc.Theory and practice,from the two dimensions of family ownership and management rights,explore and analyze the relationship between different involvement channels and R&D investment,and use the source of managers and the concentration of equity as the moderating variables under the two involvement channels.The adjustment mechanism of the relationship between the two.Finally,the sample selected in this paper is a total of 2285 pieces of balanced panel data from 457 listed family companies from 2013 to 2017.The model is used to empirically analyze the impact of different involvement dimensions of family companies on R&D investment,and draws the following conclusions:(1)The degree of family ownership involvement is negatively correlated with R&D investment;(2)The degree of family management involvement is positively correlated with R&D investment;(3)The relationship between family ownership involvement and R&D investment is derived from the source of the manager When it comes to moderation,when external professional managers are hired,the obstruction of family ownership involvement in R&D investment will be strengthened.(4)Equity concentration plays a role in regulating the relationship between family management involvement and R&D investment.The higher the equity concentration,the weaker the incentive effect of family management involvement in R&D investment.After clarifying the relationship between thedegree of family involvement and the R&D investment of the enterprise and the moderating effect of corporate governance on the relationship between the two,the question of whether the two dimensions are "power" or "resistance" to the enterprise's R&D investment is answered,which not only It is of practical guiding significance to increase the competitiveness of family businesses and reduce their own shortcomings.It also provides theoretical support for the implementation of innovative development strategies and breakthrough innovations.