Research On The Impact Of Internal Control On R&D Expenditure

Innovation is an important strategic task for China's economic system reform.How to transform the economic growth mode from resource-dependent to innovation-driven depends on the continuous enhancement and development of innovation.In order to break through and smoothly implement the innovation strategy,China needs to continuously improve the independent innovation capability of enterprises,strengthen the building of independent innovation capabilities,establish the role of enterprises in the technological innovation system,and strengthen the dominant position of enterprises.Only in this way can we enhance the innovative image of Chinese enterprises,enhance their sense of innovation,and enhance their international competitiveness.As the core part of the innovation activities,R&D expenditure is an effective way to enhance the core competitiveness of enterprises and realize the economic benefits of enterprises.At the same time,the internal control system is important to corporate governance.At present,some scholars have found that corporate governance has a certain impact on corporate R&D expenditure.It is precisely because of the relationship that it is of great significance to study the role and impact of internal control on R&D expenditure investment.This paper adopts the research and development data of 12,068 Shanghai and Shenzhen A-share listed companies from 2010 to 2017,and builds an OLS regression model to empirically test the impact of internal control on R&D expenditure.The research results show that the quality of internal control of enterprises has a significant role in promoting R&D expenditure.The higher the quality of internal control owned by enterprises,the greater the amount of R&D expenditure.This shows that enterprises with higher internal control quality can promote their increased R&D investment,and improving the internal control quality of enterprises becomes an important factor affecting their long-term competitiveness.This paper introduces the interaction variables between internal control and enterprise nature,internal control and marketization index,and further examines the influence of enterprise nature and marketization degree as regulatory variables on corporate R&D expenditure.The results show that the quality of internal control plays a significant role in promoting the R&D expenditure of state-controlled listed companies,which is significantly lower than that of non-state-owned listed companies.The promotion of R&D expenditures of listed companies with lower marketization index is significantly lower than that of listed companies with higher marketization index..This shows that the promotion of internal control quality to R&D expenditure is affected by the property rights of the company's actual controllers and the degree of marketization.