Shareholder Networks And Firm R&D Expenditure

As we all know,innovation is an important force to promote the progress of human society.Pursuing innovation is for great development and great future.Once a country has mastered the power of innovation,it will have the initiative in development.Enterprise’s R&D expenditure is the main carrier of innovation,and academic research has suggested that R&D spending on innovation has a significant role in promoting,but R&D spending itself has the characteristics of long investment,recovery uncertain,which makes enterprise dare not easy to make a decision,and with the development of the society,the influencing factors of enterprise R&D expenditure are becoming more and more complex,and uncertainty has increased,"behind closed doors" innovation mode has been unable to meet the needs of the present.Enterprise idea gradually accepted that exists in all kinds of social networks.scholars studied the enterprises’ social network effect on enterprise R&D expenditure,but from the existing literature,More studies are about the effect of the director of the network.Shareholders as the owner of the enterprises play an important role,and the relationship of network they formed has more research value.So based on the systematic analysis of the network theory and the combing and summarizing of the existing research results in domestic and overseas,this paper applies the thoughts and research methods of the network theory to the R&D expenditure of enterprises.By using 2007-2019 Shanghai and Shenzhen a-share listed company data,in this paper,OLS regression method is used to empirically analyze the influence of network location of enterprises on R&D expenditure,and further studies the moderating effect of cultural differences based on the top five shareholders jointly established the shareholders network,analysis of the characteristics of network location,the connection of enterprises in each province,and the topological nature of shareholder network.Through the study,we find that :(1)the connection between China’s provinces has been stable,and the network density has been very good;(2)The connection between enterprises is becoming closer and closer,and the phenomenon of having common shareholders has become very common;(3)The superior network location of the enterprise will inhibit the R&D expenditure of the enterprise.Specifically speaking,the degree centrality of enterprise has a significant negative effect on the enterprise R&D expenditure,so does the richness of structural holes.In the research of classified discussion,it is found that this inhibiting effect is weakened in high-tech enterprises,state-owned enterprises and small-scale enterprises,and has a significant inhibition effect in non-high-tech enterprises,non-state-owned enterprises and large-scale enterprises;(4)After considering the influence of cultural differences,we find that the northern culture enhances the inhibiting effect of network location on R&D expenditure;Compared with regions with relatively single culture,cultural diversity also enhances this inhibiting effect,but the inhibiting effect of degree centrality on enterprise R&D expenditure is reduced significantly by the integration and communication of the culture between north and south.