Internal Control,Public Welfare Donation And R&D Spending

Innovation plays a vital role in improving the core competitiveness of enterprises,but it has the characteristics of high risk,high uncertainty and seriously lagging returns,so the innovation of enterprises cannot do without continuous r&d investment.However,as China’s economy enters the stage of high-quality development,enterprises need to attach importance to corporate social responsibility,and public welfare donation is the highest form of corporate social responsibility.Both the social capital brought by public welfare donation and the professional capital built by R&D investment have an important impact on the development of enterprises.On the one hand,social capital can bring legitimacy recognition and resource support to an enterprise,while professional capital can explore the market and create profits,so "synergy effect" may be formed.On the other hand,public welfare donation and r&d investment are both strategic "long-term investments",and they will have long-term competition at the strategic level,so there is a certain "crowding effect".Therefore,it is a question that needs to be discussed in this paper whether public welfare donations have a "synergy effect" or a "crowding effect" on enterprises’ R&D investment.In addition,as an institutional arrangement of an enterprise,internal control has the characteristics of comprehensiveness and standardization,which is rooted in the enterprise and can supervise and guide the financial process and business process of the enterprise,so as to reduce the risks generated by the enterprise’s RESEARCH and development activities and ensure the smooth development of the enterprise’s innovation activities.Therefore,this paper takes internal control as a moderating variable to explore how internal control affects the relationship between public welfare donation and R&D investment.Based on the above questions,this paper takes the panel data of China’s A-share listed companies in Shanghai and Shenzhen from 2012 to 2020 as samples to empirically study the impact of public welfare donation on R&D investment and the moderating effect of internal control.The results show that public welfare donation can promote the increase of r&d investment;High quality internal control can enhance the promotion effect of public welfare donation on R&D investment.Further research shows that :(1)the higher the marketization index is,the more significant the positive effect of public welfare donation on r&d investment is;(2)Compared with enterprises in low-concentration industries,public welfare donation of enterprises in high-concentration industries positively promotes R&D investment,and internal control positively moderates r&d investment.(3)The path study proves that public welfare donation mainly affects R&D investment through financing mechanism,gaining competitive advantage and enhancing human capital value.