Influence Mechanism of Corporate Governance on High-Tech Companies' R&D Expenditure--Empirical Evidence from China

The paper investigates the relationship between corporate governance and investment in R&D of High-Tech companies in China. It also analyzes the influence mechanisms of corporate governance on R&D expenditure, which include insider pattern and outside pattern. On the basis of the former research in the field of corporate governance and R&D expenditure, the paper explains three aspects about corporate governance and financing of investments in R&D: the nature of the principle, the extent of ownership and control, and characteristic of the board with their impact on R&D expenditure on the firm level. Based on the theoretical analysis above, we propose relative hypotheses and analyze the possible path that corporate governance works on R&D investment. In order to test the hypotheses above, we use the firm-level data and set up the statistical model to do the empirical analysis and get related results. And we conclude some useful implications for future corporation's performance and policy.