Research On The Impact Of Corporate Governance On Corporate R&D Investment

Strategic emerging industries are defined as industries that are built on the basis of major scientific and technological breakthroughs and major development needs,and at the same time can lead and drive the overall long-term development of the economy and society.Strategic emerging industries consume less material resources and are knowledge-intensive industries with high growth potential and good comprehensive benefits.However,in the process of developing strategic emerging industries,there are long-term problems that need to be solved urgently,such as insufficient technological innovation capability,imperfect innovation ecosystem,and low innovation and development efficiency.For a long time,the technology diffusion effect brought by globalization has helped my country’s strategic emerging industries develop rapidly.The global new crown epidemic that broke out in 2020 has significantly weakened the dividends brought by the technology spillover effect.The ability of independent technological innovation in the industrial field is becoming more and more important.The investment of enterprises in innovation and R&D is the basis for improving the independent innovation ability of enterprises.Regarding the question of what factors can promote enterprises to increase R&D investment,scholars at home and abroad have conducted a large number of data collation and empirical analysis,and have achieved many practical results.These results are the important guarantee for the research of this paper to be carried out.Innovative R&D investment has the characteristics of uncertainty,asset specificity,income lag,and spillover,which leads to conflicts of interest among stakeholders.Managers may reduce their willingness to invest in R&D,thereby hindering the innovative development of enterprises..As a specific institutional arrangement,corporate governance can resolve conflicts among stakeholders,including shareholders,by rationally allocating technological innovation resources of enterprises and establishing cooperation mechanisms,supervision mechanisms and incentive mechanisms for different stakeholders.The corporate goal of maximizing profit.First of all,this paper clarifies the connotation of corporate governance,which refers to regulating the conflict of interests among stakeholders including shareholders,operators,creditors,etc.through a specific institutional arrangement.The corporate governance model has undergone the evolution from the "shareholder first" model to the "stakeholders" model,but no matter which model is used,the core goal of corporate governance is to protect the interests of stakeholders such as shareholders,creditors,and the government.To maximize the interests of shareholders,there is a logical unity between the "shareholder first" governance model and the "stakeholders" governance model.Then,this paper reviews the domestic and foreign literature on the relationship between corporate governance and corporate innovation and R&D investment,and finds that corporate governance can be divided into three dimensions:ownership structure,incentive mechanism and board structure.This paper studies the impact of corporate governance on corporate R&D investment from one dimension.In addition,the factors that affect the R&D investment of enterprises also include enterprise scale,enterprise age and government subsidies.It is true that,subject to various subjective and objective factors,including the theoretical basis referenced by scholars,the research methods adopted,the research perspectives chosen,and differences in research objects,scholars did not reach a unified research conclusion in the end.Based on the above analysis and cognition,this paper chooses to study the relationship between corporate governance and enterprise R&D investment by taking the ownership structure,incentive mechanism and board structure of three levels of corporate governance as the research starting point.Secondly,this paper analyzes the mechanism by which corporate governance affects R&D investment.As the basis for realizing technological innovation,R&D investment has the characteristics of uncertainty,asset-specific,income lag,and spillover.The willingness to invest in research and development,and corporate governance,as a specific institutional arrangement,the core goal is to make the operators maximize the service of shareholders by rationally allocating the technological innovation resources of the enterprise and establishing the cooperation mechanism,supervision mechanism and incentive mechanism of different stakeholders.,according to such a logical relationship,the basic theoretical framework of corporate governance affecting R&D investment of enterprises is constructed.Third,this paper analyzes the relationship between corporate governance and corporate R&D investment from three dimensions: ownership structure,incentive mechanism and board structure,and puts forward corresponding hypotheses.In terms of ownership structure,it analyzes the impact of equity nature,equity concentration and institutional investor shareholding ratio on R&D investment;in terms of incentive mechanism,it analyzes the impact of management’s annual salary and management shareholding ratio on enterprise R&D investment;In terms of board structure,the influence of board size,proportion of independent directors and leadership structure on R&D investment of enterprises is analyzed respectively.At the same time,on the basis of theoretical analysis and discussion,corresponding research hypotheses are put forward respectively.Fourth,after completing the above theoretical analysis and research assumptions,this paper selects the constituent stocks in the China Strategic Emerging Industry Composite Index released by China Securities Index Co.,Ltd.and the Shanghai Stock Exchange as the research object,using the relevant data from 2017 to 2020 Descriptive and regression analyses were performed.In this paper,the multiple linear regression analysis tool is selected,and a corresponding model is constructed.The R&D investment intensity is used as the explained variable.The explanatory variables are the nature of equity,the concentration of equity,the shareholding ratio of institutional investors,management compensation,and management shareholding ratio.,the size of the board of directors,the proportion of independent directors,and the leadership structure.The selection of control variables refers to the results of previous literature studies,including company size,company age and government subsidies,while controlling for industry effects and annual effects.Because enterprises of different ownership types have certain differences,after the regression analysis of the whole sample,the sample is divided into state-owned enterprises and non-state-owned enterprises for further empirical analysis and discussion of the results.Finally,based on the empirical test results,combined with the content of theoretical analysis,this paper summarizes the research results,and based on the research conclusions,puts forward policy suggestions to improve the level of R&D investment in enterprises from the perspectives of improving the ownership structure,incentive mechanism and board structure.