R&D Input,Internal Control And Corporate Performance

Innovation is the only way for the country to achieve industrial upgrading and high-quality economic development.Strategic emerging industries are leaders of technological innovation in China,so exploring the relationship between R&D input and corporate performance of them is strategically significant.For a long time,academic research on R&D input has focused on R&D capital investment,and less on R&D personnel input.However,the realization of technological innovation requires not only capital investment of R&D,but also the imagination and creativity of R&D personnel.The scale and quality of R&D personnel determine the quality of R&D results and the effect of ultimately turning R&D products into market performance.If you do not consider the human factor,it will cause deviations in the research results and cause problems in the real world of R&D activities.Therefore,based on the consideration of R&D capital investment,this paper especially add the factor of R&D personnel input to the research,and test their impact on business performance.At the same time,because of the high-risk for enterprises,risk management of technological innovation must be strengthened.As an important means of risk management,studies on the impact mechanism of internal control on R&D activities,will help companies to identify the role of risk management in technological innovation.Therefore,this paper further explores the role of internal control in the process of transforming the two elements of R&D input into enterprise performance.This research can not only provide enterprises with technical innovation management methods,but also provide reference for formulation of government's macro-level policy.Firstly,based on the current situation of technological innovation in China and the background of the promulgation and implementation of the Guidelines for Internal Control Standards by five Chinese ministries,this paper reviews the existing literature,and finds that the academic circles are less involved in the research of R&D personnel and moderating effect of internal control on R&D input and enterprise performance.In order to make up for the deficiencies of the existing research,based on four basic theories: Technology Innovation Theory,Human Capital Theory,Principal-agent Theory and Signaling Theory,this paper carries out theoretical research and puts forward assumptions.The main contents of this paper include:(1)The relationship between the two elements of R&D investment(capital,personnel)and enterprise performance,and its lagging effect;(2)The influence of internal control on enterprise performance.;(3)The research of moderating effect of internal control on R&D input and enterprise performance.Furthermore,this paper chooses the data of strategic emerging industries in Shanghai and Shenzhen Stock Exchanges' A-share listed companies from 2011 to 2017,and uses hierarchical regression method to test the corresponding assumptions of the above contents.Through the above research,this study draws the following conclusions:(1)Both R&D capital investment and personnel input can promote the corporate performance,and this impact is lagging;(2)There is a positive relationship between internal control and corporate performance;(3)Whether it is R&D capital investment or personnel input,internal control has a positive adjustment effect on the relationship between it and corporate performance.According to the conclusion,this paper puts forward policy recommendations:(1)Enterprises should increase R&D capital investment,expand R&D funding sources actively,and then solve the problem of insufficient R&D funds;(2)Enterprises should pay attention to the scale and quality of R&D personnel and improve the human capital of enterprises;(3)Enterprises need to build a standardized internal control system and ensure the effectiveness of its implementation;(4)Enterprises should focus on building a perfect risk management system and foster an excellent risk management culture.