The Study Of CEO Characteristics And R&D Spending

Now, with the development of the knowledge economy and the accelerating process ofglobal economic integration, the competitive advantage of enterprise depends on it’s coretechnology. The R&D spending of enterprise is it’s financial base to obtain a competitiveadvantage. Researching the R&D spending decisions can reduce the adverse effects causedby the entrepreneurs’ negative influence on the technological progress in enterprises, which isbeneficial to the development of enterprise.We use the empirical analysis in this paper. It uses the R&D intensity as the dependentvariable. And use CEO’s gender, age, tenure, education, professional background, ownershippercentage, on-the-job consumption as the independent variables. We study the correlationbetween the CEO’s background characteristics and R&D spending. The main content of thispaper is divided into five parts. The first part is the introduction, introducing the researchbackground, the significance of the issue. The second part is literature review, mainlydiscussing R&D spending on enterprise performance, also some empirical research of relatedfactors on the impact of corporate R&D spending. The third part is the research method andresearch design, including sample selection, data sources, variable design, researchhypotheses, and model building. The fourth part is the empirical analysis between CEO andcorporate R&D investment, and we also give some policy advice. Finally, we carry empiricaltests of CEO on corporate R&D investment. The fifth part we give the conclusions andshortcomings of this paper, also, some suggestions on the follow-up study.We obtain the following important conclusions.(1)The relationship between CEO’stenure and R&D spending is like an inverted U. The first year, Corporate R&D investment isrelatively small. The second and the third year, R&D spending will rapidly increase. But insubsequent years the R&D spending will decrease.（2）With the CEO’s age becoming larger,the significance of the positive correlation between the stock ownership with the R&Dspending becomes smaller. Especially for the old CEO, whose stock ownership is negativewith R&D spending.(3)The CEO’s compensation measured by perk is significantly negativewith R&D spending, especially in state-owned enterprises.