Research On The Influence Of Corporate Governance On Enterprise R&D

With the acceleration of global economic integration and increasingly fierce international competition,innovation has not only become the key for enterprises and countries to gain competitive advantages,but also an important driving force for high-quality and sustainable development.China is also accelerating the construction of the innovative country.In recent years,the number of R&D personnel and R&D expenditure in China are rising,but compared with developed countries,China's R&D investment intensity is still relatively low,and there is a large room for improvement in the driving force of innovation for economic development.Enterprises play the most important roles in a country's innovation activities.If we want to improve the innovation level of the whole country,we can firstly improve the innovation level of enterprises.Therefore,it is of great significance for the research on enterprise innovation.Enterprise innovation level involves both innovation willingness and innovation ability.The amount of enterprise R&D input reflects the level of enterprise innovation willingness to some extent,and R&D output can reflect the conversion rate of enterprise R&D investment,which reflects the innovation ability of enterprise to some extent.Therefore,this paper comprehensively reflects and measures the innovation level of an enterprise from the perspectives of R&D input and R&D output.Enterprise innovation is characterized by high risk and long cycle.In the absence of risk sharing by external subjects,enterprises can only rely on internal supporting.At this time,the importance of corporate internal governance system to enterprise innovation can be reflected.Whether and how much an enterprise invests in R&D is planned by the meeting of shareholders,decided by the board of directors and executed by managers.The innovation willingness of an enterprise is mainly determined by internal factors,while external factors play a more auxiliary role.There exists practical and theoretical meaning to study the influence of corporate governance structure on enterprise innovation.This paper is written in accordance with the framework of literature review and theoretical basis-influence mechanism and path-empirical test and analysis-research conclusions and policy recommendations.Firstly,relevant theories and literature are reviewed,and the possible influence path and mechanism are preliminarily analyzed theoretically,and then tested by empirical model.This article selects 767 listed companies from A stock market as the research objects,using panel data from 2010 to 2017,selected five indicators from the ownership structure,management incentive mechanism,and internal control three aspects to reflect the status of corporate governance,and then use panel Tobit model to explore the influence of corporate governance to the R&D input and R&D output.Theoretical analysis shows that good corporate governance is conducive to reducing agency problems,reducing agency costs,and promoting enterprises to increase R&D input and obtain R&D output.The empirical results show that the degree of ownership concentration has a significant negative impact on the R&D investment of enterprises,and there is a significant positive relationship between the degree of ownership balance and the R&D investment of enterprises.Executive shareholding has a significant promoting effect on enterprise R&D investment,but there is an inverted U-shaped relationship between executive compensation and enterprise R&D investment.Good internal control quality will stimulate enterprises to increase research and development investment and obtain research and development output.There is a significant negative relationship between ownership concentration and R&D output,while ownership balance,executive shareholding and executive compensation have no significant influence on R&D output.For enterprises with different property rights,the influence of corporate governance on innovation is different:in state-owned enterprises,the positive effect of equity incentive is more obvious,while the "inverted U-shaped" relationship of fixed salary is weaker.The ownership concentration degree and ownership balance degree have no difference influence on the property right.Finally,in order to enhance the competitiveness of enterprise R&D and enhance the level of innovation in China,this paper bases on the theoretical analysis and empirical test of the research conclusions,combines with China's actual background and situation,and finally proposes several suggestions to enterprises and government respectively.It is suggested that enterprises should optimize the equity structure,avoid excessive concentration of equity,and set up a reasonable equity balance mechanism.Enterprise shareholders should establish correct operation and investment concepts,create a fair,impartial and innovative enterprise atmosphere,and establish an effective internal control system;Improve the incentive mechanism of the management,combine short-term incentive with long-term incentive.It is suggested that the government should increase the support for enterprise R&D activities and encourage enterprise R&D innovation.In particular,government should focus on the research and development support for small-sized and medium-sized enterprises and optimize the reform of non-state-owned enterprises equity incentive mechanism.