Research On The Impact Of Equity Concentration On Enterprise R&D Investment

The innovation of technology has fundamentally changed the way that enterprises used to make high profits with labor force and capital.High level of R&D investment intensity is regarded as an important guarantee to improve the ability of independent innovation of enterprises.However,R&D activities are characterized by high capital demand,long investment cycle,high risk and high uncertainty of investment,which require higher capital level,R&D ability and anti-risk ability of enterprises.At the same time,the long-term and stable R&D investment of enterprises needs to be supported and guaranteed by good external institutional environment and internal governance environment.How to realize enterprise technology innovation and how to improve innovation ability have been paid much attention to in the field of practice and theory research.Over the years,the academic field has conducted a lot of research on the influencing factors of technological innovation and R&D investment,among which the research conclusion on the influence of ownership concentration degree on R&D investment has not been reached.In this dissertation,the listed manufacturing companies are selected as the research object,focusing on the influence of ownership concentration on R&D investment.In theoretical research section,through the combing and analysis of existing research,this paper based on the theory of principal-agent theory,innovation theory,combined with R&D and relevant concepts of corporate governance and ownership structure and governance of Chinese listed companies,the equity concentration influence of R&D input,summarized the bilateral mechanism and analysis,the empirical research part,this article to bilateral random boundary model,the ownership concentration on R&D input of bilateral influence decomposition,measured the ownership concentration of positive effect and negative effect and the size of the net effect,In addition,this dissertation compares the different characteristics of the influence of concentration in different years,different concentration levels,different scales,different enterprise nature,different industries and different regions,and analyzes the status quo of technological innovation and corporate governance of listed companies in the sample manufacturing industry from the perspective of major shareholder governance.The results of this study are listed below:1.In all samples,the positive effect of concentration makes the actual R&Dinvestment level higher than the frontier investment level by 20.9%,while the negative effect makes the R&D investment level lower by 31.4%.The interaction between the two results in the average innovation R&D investment level of actual enterprises being lower than the frontier R&D level by 10.4%.About 2/3 of the enterprises' actual R&D investment performance is not as well as the frontier level under the influence of bilateral influence.In general,the ownership concentration degree restrains the R&D investment of enterprises.2.The net effect of ownership concentration on R&D investment is negative each year.The net effect(2012)increased from-10.9% to-10.0%(2018).Meanwhile,the positive effect increased and the negative effect decreased year by year.3.According to the characteristics of enterprise heterogeneity,in enterprises with highly concentrated,large scale,state-owned holding,traditional manufacturing industry and western region,the intensity of enterprise R&D investment deviates more from frontier level.Finally,this paper proposes suggestions from four aspects of the innovation influence mechanism of ownership concentration to promote enterprise innovation input and enhance innovation vitality: First,to improve the attention level of managers to the long-term value and technological innovation of the company.Second,strengthen shareholders' supervision and restraint on managers and management.Thirdly,the risk aversion tendency of major shareholders should be alleviated.Fourth,strengthen the behavior constraint of major shareholders and restrain the behavior of major shareholders.This dissertation provides a more comprehensive research perspective for fully understanding the influence of ownership concentration on R&D investment through the decomposition of the influence of ownership concentration on innovation and the comparison of the difference among enterprises with different characteristics...