Research On The Impact Of Institutional Investors On R&D Investment From The Perspective Of Life Cycle

Innovation is very important for both the country and the enterprise,and the R&D investment is an important index to measure the innovation ability of the enterprise.In recent years,it has also attracted much attention.But the innovation ability of Chinese enterprises is generally weak at present,and the investment in R&D is low.Moreover,R&D investment itself has the characteristics of high risk,long cycle and high investment,making R&D investment faced with financing constraints and management constraints.As an important participant in the capital market,institutional investors are also important external investors,which can play a certain role in promoting R&D investment.At the same time,enterprises are facing different problems and characteristics in different life cycle stages.Therefore,the role of institutional investors in R&D investment is different in different life cycle stages of enterprises.Besides,there are different types of institutional investors,and can also be classified as stress sensitive and stress resistant institutional investors.The role of each specific type of institutional investor in R&D investment in every life cycle stage is worth studying.Based on 2010-2015 years' Shanghai and Shenzhen A share listed companies,based on the literature summary and research analysis,this paper validates the impact of institutional investors on R&D investment from the perspective of life cycle.At the same time,we consider the heterogeneity of institutional investors,and refine institutional investors into pressure resistant institutional investors and pressure sensitive institutional investors,and verify the impact of these two types of institutional investors on R&D investment at different life cycle stages.In addition,a further study is made to consider the role of general corporate ownership in pressure sensitive institutional investors for R&D investment.The results show that:(1)Institutional investor ownership plays a positive role in promoting R&D investment.(2)Detailed analysis shows that institutional investors can play a positive role in R&D investment of enterprises when they are in different stages of growth,maturity and decline.(3)In comparison with growth and maturity,pressure resistant institutional investors can play a positive role in R&D investment than pressure sensitive institutional investors.In the recession,the pressure-sensitive institutional investors are more capable of promoting R&D investment than the pressure-resistant institutional investors.(4)Further studies found that the general legal person in the stress sensitive institutional investors played a role in promoting R&D investment while the enterprises were in the recession stage,while in the other two life cycle stages(growth and maturity),the role of R&D investment was not significant.The main innovations of this paper are:(1)Based on the enterprise life cycle perspective,this paper divides the enterprise into different life cycle stages,and studies the institutional investors as a whole,and considers the heterogeneity of institutional investors,and divides them into pressure resistance and pressure sensitive institutional investors,and the impact on the investment of enterprise R&D.This paper proves that the role of institutional investors in the development of R&D investment and the role of different institutional investors in the life cycle of different enterprises is a study from the dynamic perspective of the life cycle,which is a supplement to the previous literature.(2)Take into account the particularity of the capital market in China and takes the general legal person shareholding into consideration,and studies it as a special pressure sensitive institutional investor.This paper analyzes the impact of general corporate Shareholding on R&D investment in different life cycle stages,which is a supplement to the existing literature in institutional investors and pressure sensitive institutional investors.It also indicates the important role of the general legal person holding on the R&D investment of the recessionary enterprises.Based on the above research,this paper put forward the corresponding policy recommendations are:Continue to encourage and support the development of institutional investors,and strengthen the team of institutional investors;Recession risk facing enterprises in transformation and upgrading,more consideration of the general legal person shareholders,use of its resources to help itself to get rid of the trouble of business,the appropriate regulatory authorities should also encourage the mechanism of corporate governance investors to participate in the recession period of enterprises,to help enterprises solve business problems.