Capital Structure, R&D Investment And Corporate Value

Research and Development(R&D)plays an important role in the process of improving market competitiveness and strain capacity, and it also makes companies development stay relatively stable in the fierce market competition. At present the independent innovation ability of our country’s enterprises is still weak, and the innovation power is still inadequate. Improving the corporate R&D investment conditions is very important to enhance our country’s innovation vigor. Therefore, the research of R&D investment has always being the topic with scholars’ attention.Capital structure is measured by the variables of ultimate controlling person, ownership concentration, senior management shareholding ratio, and debt ratio. Then moderating effect theory has been applied to discuss the moderating effect of capital structure on R&D investment and corporate value. The empirical results indicate that:(1)As a pure moderating variable, ultimate controlling person plays a negative regulatory role between R&D investment and enterprise value.(2)As a half moderating variable, ownership concentration plays a direct and positive regulatory role between R&D investment and enterprise value. The higher ownership concentration is in favor of corporate R&D investment.(3)Senior management shareholding ratio plays a positive regulatory role between R&D investment and enterprise value.(4) R&D investment has a positive effect on firm value, and its impact will alters as corporate debt levels are high or low. For the state-controlled listed companies, the positive impact extent of R&D investment on enterprise value is no distinction between high debt companies and low debt companies. but for non-state-controlled listed companies, the positive impact extent of R&D investment on enterprise value in high debt ratio companies is lesser than that of companies with low debt ratio.