TITLE:
Nature of Controlling Stake, Manager Shareholding, and R&D Investment
AUTHORS:
Zhen Liu, Bo Liu
KEYWORDS:
Manager, Equity Compensation, R&D Investment, China
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.5 No.5,
May
29,
2015
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.