Study On The Impact Of Corporate Governance On The Listing Companies’ R&D Input Of Different Properties

Nowadays, technology is developing rapidly, which brings great convenience andfreshness to us. At the same time, corporations are faced up with a higher challenge: toinnovate. As for not only Nations but also companies, technologic innovation is of greatimportance. To increase R&D input has become the only path for companies to surmount theircompetitors. The practice is that China falls behind other developed countries on R&Dinvestment. There is a long way to go until we catch up with them. As companies arecomponents of the society, they play important roles in the social economy. In order toincrease firm’s R&D input, researchers has done a lot. They probe into the factors which mayaffect the firm’s R&D input. There is no doubt that corporate governance is an important one.On the basis of summarizing the research achievements and learn from others, this paperresearches the internal corporate governance and the impact of R&D investment ofstate-owned listed Corporations and private listed corporations separately. Listed corporationsof11provinces and municipalities in the east area are chosen as the sample. They are dividedinto two parts to help to the comparative study. Three dimensions of the corporate governanceare involved in the paper. They are equity structure, the structure of the board of directors andexecutive incentive.The results are as follows:(1)Ownership concentration and the equity balance of theState-owned listed companies have negative effect on the firm’s R&D input, while the ones ofprivate listed companies are on the contrary.(2)The relationship between the size of the boardof directors and R&D input is inverted "U" type for the two parts. The independent directorsof the two parts do not affect the R&D input obviously. It helps a lot to allot equity to thedirectors of the state-owned companies, while the affect on private ones is not clear. Whetherthe position of the chairman and general manager are taken by different persons has littleeffect on the R&D input of the state-owned corporations, but it is important for the privateones. Because the result shows that if the two positions are taken by different persons, the R&D input of the private companies increases.(3) Both the compensation incentive and equityincentive for Executives do favor to increase the R&D input for the two samples. Besides, theresult of equity incentive is better than the compensation incentive. The result of equityincentive for private listed companies is better than state-owned ones.According to the results of empirical research, some advice is put forward, such as:(1) Todecrease the equity ratio of the State to release the situation that State is the single-largeshareholder;(2) To make sure that the independent directors can have the space to play a rolein the corporate governance;(3) To optimize the current salary system and enlarge theproportion of equity incentive. This paper may help to rich the existed research and providethe evidence to reform the company system of the listed companies of our country.