The Empirical Study Of The Characteristics Of Board Of Directors And R&D Investment

Innovation is the internal motivation for the sustainable development of enterprises.More and more enterprises have gradually realized the importance of the research and development activities to enhance their core competitiveness in global integrational background. Board governance is the most important part of corporate governance.Therefore, in the background of R&D investment lackness, this article aims to reveal how the board affect the activities of innovation in the perspective of board governace and hope we can give some valuable suggestions to help Chinese enterprises enhance their capacity for sustainable development and make a contribution to establishing a foundation of innovation to compete with foreign corperations as the current situation of R&D investment.The thesis summarizes the related research conclusions of domestic and foreign scholars and is based on several theories,analysis what will affect R&D investment on the basis of previous researches on the specific circumstances of China and proposes relevant hypothesis.We choose R&D and the board data for 3 years,and by establishing the multivariate regression model it comes to conclusions as follows:(1) structure of the board:tthe scale of he board of directors has little impact on R&D investment intensity, and the independence of the board and duality plays a positive role in promoting R&D investment.(2) behavior of the board: there is the remarkable non-linear relation between board meetings and the R&D investment.(3) incentive of the board of directors:board salary effectively improves the enterprise of R&D intensity, however the equity incentive of the board of directors failed to promote R&D investment because of low degree of directors’ shareholding.(4)background of the board of directors: we found higher educational background directors will realize the significance of R&D investment.However, considering professional background of the board of directors related to R&D activities, the board of directors who have worked in the high tech industry will spend more in R&D activities than the one who have worked as a researcher. At last,the thesis points out the factors of limiting R&D investment and provides us some suggestions to domestic companies to improve governance environment and their ability of innovation.