Nature of Controlling Stake, Manager Shareholding, and R&D Investment

Zhen Liu¹, Bo Liu²

¹Accounting and Finance Research Center, Zhengzhou Institute of Aeronautical Industry Management, Zhengzhou, China.
²Department of Accounting, Shengda Trade Economics & Management College of Zhengzhou, Zhengzhou, China.

DOI: 10.4236/ajibm.2015.55033                

Abstract

This paper makes an empirical analysis on influence relation of manager equity compensation on R&D investment under different nature of controlling stake by applying multivariate regression analysis and ordinary least square and taking China listed companies from 2007-2012 as samples. The study finds that in state controlled enterprises, management shareholding ratio has positive influence relation on R&D investment intensity; in non-state-controlled enterprises, management shareholding ratio has “range effect” influence relation on R&D investment intensity. The research of this paper can further expand existing relevant theory of corporate governance and R&D investment, and provide theoretical support and decision reference for enterprises to optimize compensation contract and correct R&D underinvestment.

Keywords

Manager, Equity Compensation, R&D Investment, China

Conflicts of Interest

The authors declare no conflicts of interest.

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