The Influence of CEO Power on R＆D Investment in GEM

Abstract

Abstract: Adequate resources are necessary, which can ensure the continuity of R&D, reduce uncertainty of R&D and improve the ability of innovation, while the power size of CEO has an important impact on corporate strategy and resource allocation. This article first builds CEO power measure method from organization power, ownership rights, reputation rights and expert power four dimensions, and then makes an empirical study of the relationship between CEO power and R&D investment by taking GEM listed companies in China from 2010 to 2013 as samples. Results show that there is significantly positive correlation between CEO power and R&D investment, and the scales of R&D staff and government subsidies have a positive adjustment role in the relationship between CEO power and corporate R&D investment. Therefore, CEO should be given more power to play fully its “housekeeper” spirit in order to promote enterprise R&D investment; at the same time, GEM listed companies should strive for more government subsidies, and keep sufficient scale of enterprise R&D staff, which will help reduce resource constraints, improve risk resistance, enhance CEO confidence, and strengthen the positive role of CEO power in corporate R&D investment.

Key words: CEO power, R&D investment, government subsidies, scale of R&D staff

WANG Nan1,2,SU Jie1,CHEN Shou-shuang3. The Influence of CEO Power on R＆D Investment in GEM[J]. 商业研究.

References

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