The Effect Of Family Ownership On R&D Investment

R&D investment is the main factor that affects a firm's independent innovation ability,survival and development.So it's paid the attention of scholars.The previous studies focused on the effect of family ownership on investment in research and development.But the relationship between the interaction between the two factors is the field that we should understand.Through combing and researching of the existing studies on family business(year 2009-2012),using the Shanghai and Shenzhen A-share manufacturing listed family enterprises as the research sample.This study investigates the relationship between family ownership and investment in research and development.Meanwhile industry development and frim size are introducted as two moderator variables.Paying close attention to the changes in the different background of development of the industry,enterprise scale under family ownership and corporate R&D investment relationship could happen.This paper excavates the mechanism of how family ownership affect R&D investment and the path influence.And it eventually reveals heterogeneity in the family business.The empirical analysis finds that:(1)the relationship of family ownership and firm's R&D investment is negatively correlated,the family business from the pursuit of non economic objectives of atypical to understand this relationship;(2)the relationship between industry growth and firm's R&D investment has no relationship,and it does play a regulatory role in the relationship between the family ownership and R&D investment;(3)the firm size has a positive correlation with the firm' s R&D investment,and it also has a positive moderating effect on the relationship between family ownership and the firm's R&D investment.The theory contributions and innovations of this thesis has mainly the following several points:(1)it's enriched the manufacturing situation of research on the family enterprise theory,expanded the understanding of family business and R&D investment behavior;(2)form the research ideas with the development of the industry and enterprise scale the two variables,through a more dynamic perspective to capture the firm's R&D investment behavior,to understand intrinsic motivation of family enterprise research and development behavior deeply.