Human Resource Of Top Management Team, Incentive Mechanism, And Company's R&D Investment

In the background of fiercely competition between companies, gradually internationalization of business, shortening life cycle of production, R&D investment becomes more and more important for company's existence and development. Through R&D movement, company can develop or bring in new product, or enhance product's quality in order to meet custom's demand and improve its product's competence in the market; Meanwhile, R&D investment can also reduce cost, thus to elevate operation ability and thus can bring new core ability to the company. This dissertation makes use of the data from Chinese listed firms which publicize R&D expenditure in 2008 to explore the relationship between TMT's human resource and firm's R&D investment. The OLS regression result of those data shows that human resource of TMT significantly affects the company's R&D investment. Besides, this dissertation uses corporate governance mechanism as grouping variable to exam the relation between human resource of TMT and R&D investment. The result approves that: proper TMT's human resource which has an impact on the company's R&D investment can function to the full only under the promotion of some corporate governance mechanism. It not only advances applicability and explaining power of"Upper-echelons Theory", but also provides good advice for structuring proper TMT and corporate governance mechanism in order to increase R&D investment for company in China.