Institutional Investors And Corporate Research And Development Investments

Research and Development activities of enterprises are the core of scientific and technological progress,which will affect the national innovation ability,scientific and technological level and economic development level.The report of the Nineteenth National Congress points out that innovation is the first driving force for development and the strategic support for building a modern economic system.Research and Development investments play an important role in improving the independent innovation ability of enterprises and countries.However,at present,China is still facing the problem of insufficient Research and Development investments of core technology,a certain gap between developed countries,and weak innovation ability.Since the China Securities Regulatory Commission put forward the idea of"developing institutional investors beyond the normal"in 2000,institutional investors have developed rapidly and gradually become an important force in the capital market.Under the background of advocating the concept of long-term value investments,it is of practical significance to explore the impact of institutional investors on Research and Development investments of enterprises.The existing research on the relationship between institutional investors and R&D investments of enterprises can not form a unified conclusion,and there are few documents to further study the relationship between institutional investors and R&D investments of enterprises from the aspects of property rights characteristics and financing constraints.Therefore,this study will help to provide a new way of thinking on the relationship between institutional investors and Research and Development investments of enterprises.This paper chooses the data of A-share listed companies from 2007 to 2017,and introduces the heterogeneity of institutional investors to empirically study and analyze the relationship between the proportion of institutional investors and the intensity of Research and Development investments.In order to further explore the impact of different characteristics of enterprises on the governance effect of institutional investors and the supervisory role of institutional investors on Research and Development investments,this paper introduces the nature of corporate property rights and financing constraints in further research.The research finds that:firstly,institutional investors can significantly enhance the Research and Development investments intensity of enterprises;secondly,stable institutional investors can significantly promote the Research and Development investments intensity of enterprises,while transactional institutional investors have no significant promotion effect on the Research and Development investments intensity of enterprises;thirdly,the nature of state-owned property rights will inhibit stable institutional investors from increasing Research and Development investments of enterprises;fourthly,high financing constraints will strengthen the role of stable institutional investors in the supervision of enterprises’Research and Development investments.In order to eliminate some endogenous problems,this paper uses the intensity of Research and Development investments in the next period,and uses Tobit model and tool variable method to test robustness.