Market-oriente D Reform,corporate Governance And Corporate R&D Investment

The importance of innovation is well known,innovation to survive has almost become the motto of every enterprise.Innovation has the characteristics of high input,high risk,high return and long cycle.Therefore,the key to innovation lies in the investment of fund and personnel.As an important subject of technological innovation and R&D investment,the enterprise is not only the main demander of innovation but also the main body of translating inn ovation result into the actual productivity.Therefore,how to promote the enterprises' innovation has become a hot topic of enterprises and academic circles.Small and medium-sized enterprises(SMEs)are a kind of special group,which play an important role in the national economy,but they also face many problems,such as shortage of funds,weak growth and short survival cycle and so on.How to promote the growth of SMEs depend on innovation,then what are the factors that affect the R&D innovation input of SMEs and how to promote their R&D investment have become o ur concerns.For China,a developing country that is in the process of economic reform,institutional factor is also one of the important factors that affect enterprise R&D investment.Market-oriented reform is a unique system of our country,as a kind of external factor affecting the behaviors of enterprises.Corporate governance structure represents the level of enterprise internal system,and it is the internal factor affec ting the corporate behaviors.These two factors will finally affect the enterprises' innovation activities.In this paper,we used the non-balanced panel data of Shenzhen Stock Exchange of SMEs listed companies in 2004 to 2015 as a sample,First of all,the principal component factor analysis method is used to get the general index of corporate governance structure of SMEs,and then we studied the relationship between market-oriented reform and corporate governance structure.Second,we used the fixed effect model to analyze the impact of market-oriented reform and corporate governance structure on R&D investment of SMEs.Finally,it examines whether the corporate governance structure has a moderating effect on the relationship between market reform and corporate R & D investment.Through the study,we got the following conclusions: market-oriented reform can promote the improvement of corporate governance level of SMEs;market-oriented reform has hindered R&D investment of Chinese SMEs;The improvement in the financing environment,measured by the sum of short and long-term borrowings,did not contribute to corporate R&D investment.The board level factors have no significant impact on the innovation input of SMEs,while the equity incentive and compensation incentives can promote the SMEs' R&D investment.The concentration of equity can significantly promote the SMEs' R&D investment,and the equity balance has no significant influence on the R&D investment.These conclusions have different performance in the sample divided by region.We also found that the regulatory role of corporate governance can weaken the negative impact of market-oriented reforms on SME R&D investment.