Research On The Effect Of Board Governance?R&D And Marketing Investment On Firm's Growth Of Strategic Emerging Industry

In recent years,the State Department pointed out that we should develop strategic emerging industry vigorously in order to establish a modern industrial system.Consequently,studying the listed companies of strategic emerging industry can reveal and predict the future of China's market economy status.Listed companies must focus on governance improvements and the perfection of scientific decision-making mechanism in order to improve the company's ability to grow so as to attract more investors.The growth of the company reflects the board governance performance directly and effectively.Good governance associates with the company's sustainable and healthy growth.Therefore,this study of the relationship of Board Governance and the company's growth is of great theoretical and practical significance.Based on Resource Dependence Theory,Agency Theory and Growth Theory,combining literature review and empirical research method,this paper puts forward 11 hypotheses so as to study the effect of Board Governance and R&D Investment on the growth of listed firms in strategic emerging industries.This paper selects 144 firms from the strategic emerging industry that listed in the Shen Stock Exchange and Hu Stock Exchange during the year from 2009 to 2015 as the samples of empirical research,then use stata to test those 11 hypotheses.The result shows:(1)The Board Size has a significant positive effect on the intensity of R&D investment.The separation leadership structure has a significant positive effect on the intensity of R&D investment.(2)The proportion of independent directors has a significant negative effect on the firm's growth.The separation leadership structure has a significant positive effect on the firm's growth.(3)The intensity of R&D Investment playing a mediating role between Board Governance and firm's growth.This is to say,the separation leadership structure has an indirect effects on corporate growth by influencing the intensity of R&D investment.(4)The interaction between marketing investment and R&D investment has significant positively effect on firm's growth.Finally,this paper puts forward appropriate recommendations for firms.The innovation of this paper lies in:(1)Establishes the mediating effect model of Board Governance—R&D Investment—firm's growth,and enriches the existing theoretical research on board governance.Based on the perspective of input-process-output,board governance can be seen as "input" which means a group of directors with human capital.This kind of "input" is good for corporate growth by making R&D investment decisions.This paper sets up the mediating role model of R&D investment between board governance and firm's growth in order to explore the process of firm's growth by making R&D investment decisions.This enriches the existing research on the paradigm of "structure-conduct-performance".(2)Builds a model to test the marketing investment moderator effect on the relationship between R&D investment and the firm's growth and clarifies the mechanism of marketing investment's moderating role.This article tests how the interaction between marketing investment and R&D investment influences the growth of listed companies of strategic emerging industry.This enriches existing research on investment decisions.