The Effect of Board of Directors Capital and CEO Power on R&D Investment： 
An Analysis of Data  from GEM Listed Corporation

Abstract

Abstract: This paper studied the relationship between board capital and R&D investment from the aspects of human capital and social capital of board of directors and tested the effect of CEO power on the relationship between board capital and R&D investment with the sample of the data of GEM listed companies. Empirical results show that：board of directors human capital has a positive effect on R&D investment, while board of directors social capital has a negative effect on R&D investment; CEO power weakens the negative effect of board of directors social capital on R&D investment, but has no effect on the relationship between board of directors human capital and R&D investment; senior titles and the proportion of executive directors negatively moderate the relationship between board of directors human capital and R&D investment, and CEO duality positively moderates this relationship; CEO ownership and CEO duality negatively moderate the relationship between board of directors social capital and R&D investment.

Key words: board of directors human capital, board of directors social capital, CEO power, R&D investment

WANG Nan1,2,HE Jiao1, HUANG Jing1. The Effect of Board of Directors Capital and CEO Power on R&D Investment： An Analysis of Data from GEM Listed Corporation[J]. 商业研究.

References

［1］白重恩,路江涌,陶志刚.中国私营企业银行贷款的经验研究［J］．经济学季刊,2005（3）: 605-622. ［2］杜兴强,陈韫慧,杜颖洁.寻租、政治联系与真实业绩：基于民营上市公司的经验证据［J］．金融研究,2010（10）:135-157. ［3］范建红,陈怀超. 董事会社会资本对企业研发投入的影响研究——董事会权力的调节效应［J］．研究与发展管理,2015（5）:22-33. ［4］潘承烈. 自主创新为何要以企业为主体［J］．企业管理,2006（2）:15-17. ［5］任兵，区玉辉，彭维刚.连锁董事与公司绩效：针对中国的研究［J］．南开管理评论，2007,10（1）:8-15. ［6］吴祖光，万迪昉，吴卫华. 税收对企业研发投入的影响：挤出效应与避税激励［J］．研究与发展管理,2013,25(5): 1-11. ［7］周建,任尚华,金媛媛,等. 董事会资本对企业R&D支出的影响研究——基于中国沪深两市高科技上市公司的经验证据［J］．研究与发展管理,2012（1）67-77. ［8］赵付民,苏盛安,邹珊刚. 我国政府科技投入对大中型工业企业R&D投入的影响分析［J］．研究与发展管理,2006（2）:78-84. ［9］Barroso,C.,Villegas,M.M.,& Pérez-Calero, L.Boardinfluence on a firm’s internationalization［J］．Corporate Governance: AnInternational Review, 2011,19: 351-367. ［10］Coleman,J.S.Foundations of Social Theory［M］．Cambridge,Mass:Harvard University Press,1990. ［11］Combs, J. G., Ketchen Jr, D. J., Perryman, A. A., & Donahue, M. S. The moderating effect of CEO power on the boardcomposition firm performance relationship［J］． Journal of Management Studies, 2007,44:1299-1323. ［12］Dalziel, T., Gentry, R. J., & Bowerman, M. An integratedagency-resource dependence view of the influence of directors’human and relational capital on firms’ R&D spending［J］． Journal of Management Studies, 2011,48:1217-1242. ［13］Datta D K, RajagopalanN,Zhang Y. New CEO openness to change and strategic persistence:The moderating role of industry characteristics［J］．British Journal of Management,2003,14(2):101-114. ［14］Donaldson L,Davis J.H. Stewardship Theory or Agency Theory: CEO Governance and Shareholders Returns［J］． Australian Journal of Management, 1991,16(1):49-64. ［15］Daellenbach, U. D., McCarthy, A. M., & Schoenecker, T. S. Commitment to innovation: The impact of top management team characteristics［J］． R&D Management, 1999, 29: 199-208. ［16］Finkelstein S. Power in top management teams: Dimensions, measurement, and validation［J］． Academy of Management Journal, 1992,35(3):505-538. ［17］Finkelstein, S. & D’Aveni, R. A. CEO duality as a double edged sword: How boards of directors balance entrenchment avoidance and unity of command［J］． Academy of Management Journal, 1994,37:1079-1108. ［18］Grabher G.The embedded firm:On the socioeconomics of industrial networks［M］．London,UK:Routledge,1993:255-277. ［19］Haynes, K. T. & Hillman, A. The effect of board capital and CEO power on strategic change［J］．Strategic Management Journal,2010,31: 1145-1163. ［20］Haynes K T & Hillman A. The effect of board capital andCEO power on strategic change［J］． StrategicManagement Journal, 2010(31): 1145-1163. ［21］Hitt, M. A., Hoskisson, R. E., Ireland, R. D., & Harrison, J. S. Effects of acquisitions on R&D inputs and outputs［J］． Academy of Management Journal, 1991,34: 693-706. ［22］Harley E R,Niggins R A.Interactions between R&D investment decisions and compensation policy［J］．Financial Management,2002,31(1):5-29. ［23］Jensen M, Zajac E J. Corporate elites and corporatestrategy: How demographic preferences and structuralposition shape the scope of the firm［J］． Strategic Man-agement Journal, 2004,25(6):507-524. ［24］Kor, Y. Y. & Misangyi, V. F. Outside directors’ industry specific experience and firms’ liability of newness［J］． StrategicManagement Journal, 2008,29:1345-1355. ［25］Kor Y Y. Director and interaction effects of top management team and board compositons on R&D investment strategy ［J］． Strategic Management Journal,2006,27(11):1081-1099. ［26］Kim,Y,and Cannella,A A, Jr.Toward a social capital theory of director selection［J］．Corporate Governance:An International Review,2008,16(4):282-293. ［27］Khwaja, A.I. and A. Mian, “Do Lenders Favor Politically-Connected Firms? Rent Provision in an Emerging Financial Market” ［J］．Quarterly Journal of Economics, 2005,120(4): 1371-1411. ［28］Keltner D，Gruenfeld D H,Anderson C.Power,Approach,and Inhibition［J］．Psychological Review,2003,110(2):265-284. ［29］Lin Y F.Corporate Governance Leadership Structure and CEO Compensation-Evidence fromTaiwan［J］．Corporate Governance,2005(13):824-835. ［30］Mizruchi,M. What do interlocks do?Ananalysis,critique,and assessment of research on interlocking directorates［J］．Annual Review of Sociology, 1996,22:271-298. ［31］Magee J C,Galinsky A D.SocialHierarchy:TheSelf Reinforcing Nature of Power and Status［J］．Academy of Management Annals,2008,2(1):351-398. ［32］Nahapiet, J. & Ghoshal, S. Social capital, intellectual capitaland the organizational advantage［J］．Academy of Management Review, 1998,23:242-266. ［33］O’Brien, J. P. The capital structure implications of pursuing astrategy of innovation［J］． Strategic Management Journal, 2003,24:415-431. ［34］Stefan Wally J,Robert Baum. Personal and Structural Determinants of Tthe Pace of Strategic Decision Making ［J］． Academy of Management Journal,1994(37):932-956. ［35］Tsai, W. & Ghoshal, S. Social capital and value creation: The role of intrafirmnetworks［J］． Academy of Management Journal, 1998,41:464-476. ［36］Wincent, J., Anokhin, S., &Ortqvist, D. Does network board capital matter? A study of innovative performance in strategic SME network［J］． Journal of Business Research, 2010,63:265-275. ［37］Westphal, J. D. Collaboration in the boardroom: Behavioraland performance consequences of CEO-board social ties［J］．Academy of Management Journal, 1999,42:7-24.

[1]	XU Hui1,2,ZHOU Bing1,2,ZHOU Xiao-hua3. IPO Overfunding and R&D Investment Smoothness: Resistance or Assistance? [J]. 商业研究, 2020, 62(9): 36-44.
[2]	SHAO Jian-bing1, NIE Lei1, LI Wei2. Does Executive Stock Ownership Promote Corporate R&D Investment? A Study based on Insider Trading Behavior [J]. 商业研究, 2019, 61(3): 124-132.
[3]	ZHANG Jin-qing, XIAO Jia-qi. Will the Differences in Executive Characteristics Affect Enterprise Performance? The Moderating Effect of CEO Power and Enterprise Environment [J]. 商业研究, 2018, 60(8): 125-132.
[4]	XU Ning, WANG Xue-ning, ZHANG Yang. The Dual Effects of Executive Reputation on R&D Investment: A Path Analysis based on the Mediating Effect of Executive Compensation [J]. 商业研究, 2018, 60(7): 104-112.
[5]	ZHANG Lin,DING Xin,WANG Jia. Monetary Policy, Trade Credit and R&D Investment: An Empirical Study based on Property Right Nature Difference [J]. 商业研究, 2018, 60(4): 24-32.
[6]	CHENG Zhong-ming1,2, ZHU Zi-chao1，ZHANG Ye1,2. Privatization of State-owned Enterprises and R&D Investment of Enterprises： Evidence from a Quasi-Natural Experiment [J]. 商业研究, 2018, 60(11): 82-90.
[7]	ZHU Fang-fang1, LI Hai-jian2. Executive Pay Gap and R&D Investment of Enterprise：Based on the Situational Role of TMT Reorganization [J]. 商业研究, 2018, 60(11): 119-126.
[8]	SHI En-yi. Exchange Rate Pass-through, Market Power and R&D Investment：An Analysis based on Panel Data of Provinces in China [J]. 商业研究, 2017, 59(9): 60-68.
[9]	WANG Nan1,2,SU Jie1,CHEN Shou-shuang3. The Influence of CEO Power on R＆D Investment in GEM [J]. 商业研究, 2017, 59(7): 111-118.
[10]	SONG Di1, YANG Chao2,3. The Faultlines of Top Management Team and Enterprise Innovation Capability: Evidence from Chinese GEM Companies [J]. 商业研究, 2017, 59(6): 24-33.

The Effect of Board of Directors Capital and CEO Power on R&D Investment： An Analysis of Data from GEM Listed Corporation

Knowledge

Abstract

Cite this article

share this article

References

Related Articles 10

Recommended Articles

Metrics