A Research On The Effects Of Stakeholders Governance On Enterprise R&D Expenditure

The capability of independent innovation is an important indicator to measure a country’s soft power. As one main body of independent innovation, strengthening enterprises’ technological innovation capability is the main way to improve the relatively backward situation of our technology while enterprise technological innovation requires a lot of research, development and investment. R&D investment in China maintains at a low level for a long time, greatly restricting the advancement of enterprise technology innovation capability. Therefore scholars both at home and abroad carried out extensive research on the factors which influence R&D spending, and laid a theoretical foundation for this article.Through perfecting theory and research model, domestic and foreign scholars paid wide attention to the relationship between corporate governance structure and R&D investment. Since to a certain extent, corporate governance not only decides enterprise motivation and intention of R&D, but also can affect the R&D project’s allocation of resources, therefore has a significant influence on technological innovation.Meanwhile, from the perspective of the stakeholders. R&D decision-making mechanism can more clearly depict the stakeholders governance’s impact on R&D investment level, therefore the study of analyzing the relationship between stakeholders governance and enterprise R&D investment plays a decisive role to the company further development. Based on the panel data of the industry of the machinery, equipment and instrumentation among listed companies in Shanghai Stock Exchange from2010to2012, this article studies stakeholders governance’s impact on corporate R&D investment as well as the impact degree.The paper summarizes the relevant literature about stakeholders management connotation and the relationship between corporate governance and enterprise technology innovation at first, and then discusses the impact of key stakeholders’, namely shareholders, creditors, and managers, governance structure, and on the basis of above theoretical analysis constructed corporate R&D investment decision-making mathematical model under the governance of stakeholders. The model introduces the stakeholders control as the proxy variable of stakeholder governance, and portrays the mechanism through which the stakeholders governance structure affect of R&D investment decisions from the point of view of the control, and put forward a hypothesis afterwards. On the basis of theoretical research, we study the effect of the stakeholders governance on R&D investment expenditure through the panel data model. In the empirical analysis section we choose listed companies of machinery, equipment and instrumentation industry in China’s Shanghai Stock Exchange as the research sample, and select the data of2010-2012for empirical test. We treat R&D investment intensity as explanatory variables. We select the variables which has the most significant impact on R&D investment as control variables, such as the size of the company, corporate growth.Through empirical research, we find that stakeholders governance have a significant impact of on R&D investment decisions. From general governance perspective, we find the higher the ownership concentration, the lower the R&D investment:Institutional investors holding ratio, the higher the R&D investment; non-state-owned holding enterprises have a higher R&D investment. Managers in the case of higher pay levels or serving as chairman will make the decision-making to enhance corporate R&D investment. The creditor governance is conducive to increasing R&D investment. Finally, we summarize the conclusion of the study on the basis of the theoretical analysis and empirical test results, and then make policy recommendations to improve the level of R&D investment of China from the perspective of the stakeholders governance.