Research On The Impact Of Private Funds On R&D Investment Of Listed Companies

R&D investment is the power source to promote social and economic development and improve the core competitiveness of the country.In recent years,China has vigorously developed institutional investors,and the participation of institutional investors has promoted the improvement of the governance mechanism of listed companies.With the introduction of private equity funds into the regulatory system,private equity funds have become an important part of institutional investors in China.It is of great theoretical and practical significance to study the impact of private equity on R&D investment of listed companies.Based on the value selection effect and value creation effect of institutional investors,this paper analyses the conditions,influencing factors and influencing ways of institutional investors’influence on R&D investment of invested companies,compares and analyses the differences between private and public funds’ effect on corporate governance of invested companies,and standardizes and analyses the causes,solutions and principles of endogenous and dynamic endogenous problems.Empirical research takes listed companies in the electronic information industry in Shanghai and Shenzhen stock markets as samples.Firstly,descriptive statistics and correlation analysis are carried out on the sample companies.Secondly,RESET model is used to test the correctness of model setting.Then,the endogenous test of variables proves that R&D investment(RD)and institutional investor shareholding(IISH)conform to endogenous test,and the instrumental variable method can be used.In order to obtain unbiased estimates,the multiple collinearity test is used to prove that there is no multiple collinearity among variables.Finally,different econometric models are established for different hypotheses.A static endogenous model is established under the endogenous framework,which is estimated by 2SLS regression,and a dynamic endogenous model is established by GMM regression,taking into account the effect of intertemporal delay of dependent variables.Under the dynamic endogenous framework,private equity funds have a positive impact on R&D investment of listed companies,and have significant value creation effect.Private equity funds have a stronger value creation effect than public equity funds on R&D investment of listed companies.At the same time,private equity funds have value selection effect on R&D investment of listed companies.When making investment decisions,private equity funds pay more attention to the intensity of R&D investment in the first two periods of listed companies.Similarly,private equity funds have stronger value selection effect on R&D investment of listed companies than public equity funds.Private equity funds pay more attention to the long-term development of investment companies.