| The actual controller of a private enterprise can play a key role in the company’s important decisions due to its shareholding advantage.Its personal characteristics will affect the performance or future development of the company,such as the company’s research and development innovation,and the innovation strength is largely.It also determines the overall strength of a country,so paying attention to the personal characteristics of the actual controller is a part that the country and the company itself must attach importance to.In recent years,the growth rate of global immigration has increased significantly,and more and more actual controllers of private enterprises have obtained foreign residency rights.The actual controller chooses to immigrate or obtains foreign residency rights in other countries or regions,which may not only have a beneficial impact on the company,such as a better corporate culture,the entry of foreign capital,etc.,but may also bring bad results to the company.Impact,because obtaining the foreign residency rights can make the actual controller run away when there are economic and other problems,so the risk of short-sighted psychology of such actual controllers is unwilling to make long-term investments.Based on the immigration boom in recent years and the background of China’s special property rights system,this article uses the perspectives of high-level echelon theory,agency theory,information asymmetry theory,corporate governance theory,and stakeholder theory to obtain foreign residency rights for actual controllers of enterprises,theoretical analysis of the impact mechanism was conducted.And then a sample of private enterprises from 2008 to 2016 was used to conduct an empirical analysis of the relationship between the actual foreign residency rights of the actual controllers and R&D investment.The results show that in our private listed companies,the actual controller’s acquisition of the foreign residency rights will inhibit the company’s R&D investment,and this relationship is more significant among the manufacturing enterprises,or the enterprises which the foreign residency rights that have not signed extradition treaties with China’s mainland.Secondly,this article further analyzes the relationship between the foreign residency rights and R&D investment of enterprises based on the consideration of different external institutional environments,market structures,and governance levels.First,when the actual controller obtains the foreign residency rights,it will reduce the number of invention patent applications and authorizations of the enterprise by reducing R&D investment.Second,it is better when the enterprise is in a region where tax collection and management is strong and marketization is high.The institutional environment determines a higher level of R&D investment,while tax collection and management generally worsens the financing constraints of private enterprises,and stakeholders generally give negative evaluations of actual controllers’ acquisition of foreign residency rights,makes these companies more likely to be eliminated by the market,so that the foreign residency rights to suppress R&D investment is more obvious;Third,when companies belong to industries with higher market concentration and competitive industries,on the one hand,competition is not conducive to innovation,which makes the inhibitory effect more obvious.On the one hand,competition promotes innovation,but as actual controllers and companies that acquire foreign residency rights often suffer more reputational loss and external mistrust,they are more likely to have problems such as agency conflicts,resulting in inadequate competitiveness of enterprises,and thus the foreign residency rights companies reduce R&D investment more obvious;At last,institutional investors and analysts always put more pressure on the short-term performance of the company,so when institutional investors have a higher shareholding,or when the company is tracked by a larger number of analysts,the actual controller is more likely to have short-sighted psychology,thereby the effect of the foreign residency rights to restrain R&D investment is more obvious.This article has strong theoretical and practical significance.It not only enriches related academic research,but also provides certain micro-evidence for the effect of foreign residency rights on the economic consequences of enterprises.It also provides a better way to formulate information disclosure supervision systems and implement taxation.The collection and management policies provide theoretical references. |
