Research On The Influence Of The Board Stability On Corporate R&D Investments

The Fifth Plenary Session of the Nineteenth Central Committee of the Communist Party of China pointed out that to build a new development pattern,we must persist in innovation,and take scientific and technological self-reliance as a strategic support for national development.Enterprises are the main body of innovation activities.Enterprises need to create an innovation culture that "tolerates short-term failures and encourages long-term success".This means that a relatively stable senior management team is the basic prerequisite for encouraging enterprise innovation.However,in recent years,incidents such as the resignation of the company’s directors and the exchange of the board of directors have occurred from time to time.The stability of the board of directors has had a negative impact on the company’s operation and management.However,there are still few documents that involve related issues on the company’s R&D and innovation activities.influences.In view of this,this article will analyze and test the influence of the stability of the board of directors on the company’s R&D investment.This paper collects the operating data of China’s A-share listed companies from 2007 to 2019 as a sample,and uses the Tobit multiple regression model to empirically test the empirical influence of the stability of the board of directors on the company ’s R&D investment level.The results find that:(1)Under the same conditions,the board of directors The higher the stability level of the company,the higher the company’s R&D investment level.It shows that a more stable board team can form a more stable future expectation and have a stronger long-term risk tolerance,thereby encouraging them to improve the company’s R&D investment level;(2)The older the average age of the board members,the stability of the board will affect the company.The weaker the role of R&D investment in promoting R&D investment,it means that a stable board of directors team should also be a younger team to motivate it to improve the company’s long-term R&D investment level;(3)The higher the company’s equity concentration,the more stable the board of directors will contribute to the company’s R&D investment.The weaker the stimulating effect of,it means that since the controlling shareholder with higher equity can influence or even control the relevant decisions of the board of directors to a greater extent,the relevant influence of the stability of the board of directors will naturally be weakened or restricted at this time.The above-mentioned research conclusions are still significantly established after the robustness tests have been carried out on endogenous issues and key variable measurement methods.Furthermore,this article also finds that the stability of the board of directors promotes the company’s R&D investment mainly in non-state-owned enterprises,and the stability of the board of directors can also help improve the company’s innovation performance measured by the number of patent applications.The research work of this article has important theoretical contributions and practical significance.In theory,this article has enriched the relevant literature on the economic consequences of director changes and board stability,as well as the research literature on the factors affecting company R&D investment,and optimized the measurement indicators of board stability on the basis of predecessors,while considering annual and the impact of different positions and their weight design have certain reference value for future research.In practice,the relevant research conclusions have some valuable practical enlightenment for how listed companies can effectively promote the company’s R&D and innovation activities,as well as the high-quality development of the national economy and the construction of a new development pattern.