The Impact Of Institutional Investors On R & D Investment In Start - Up Enterprises

Venture’s R&D investment is essential to its long-term development and the start-ups of R&D activities always with high-risk, high-return and other characteristics. This makes it very easy to have a serious principal-agent problem.Given an effective way to relieve the principal-agent problem is corporate governance. So institutional investors in order to obtain a stable return on capital markets,how to actively participate in corporate governance thereby affecting the start-ups of R&D investment.Therefore, this paper take corporate governance for the media,select the data of 2009-2014 of the GEM of our country to disclose the R&D investment in listed companies,506 GEM listed companies a total of 2976 samples for empirical analysis.This paper examines the institutional ownership with respect to large shareholders of the company whether it has a high proportion of to promote start-ups affect R&D investment,then consider the relationship between institutional investors and Venture overall R&D investment.The main conclusions are as follows:1.Institutional investors holding with respect to large shareholder balance of high business start-ups to promote R&D investment.2.The overall institutional investors have significant positive correlation with entrepreneurship research and development investment,the higher stake in overall the institution,the more investment put into the entrepreneurial corporate R&D.This shows that China’s institutional investors to participate in corporate governance for start-ups in research and development investment and reduce agency costs to a certain extent, roles as an active shareholder.This innovation as follows:Qualitative judgments by most studies is the impact of institutional investors on the previous R&D investment in start-ups,although the scope and results of research studies are vastly different,but the qualitative research from agency theory to the theory of shareholder activism is rare,the impact of quantitative research methods institutional investors to venture R&D investment is also not much.Theoretical and empirical analysis of this paper further extends the influence of institutional investors perspective Venture R&D investment right.Limitations and future research direction of this paper is two fold:Firstly, select the GEM listed companies, and did not consider other sectors, and the time span of the sample data is only six years, resulting in less sample volume, so to some extent, its applicability is limited.In future studies may be added to other sectors separate study, an appropriate extension of the sample data and time span, so you can get more accurate results.Secondly, this article does not discuss the effects of different types of institutional investors in R&D investment for start-ups.In future research adding different types of institutional investors can greatly enrich related research. in start-ups...