Corporate Governance and Investment in R&D-Empirical Evidence from China

The purpose of the paper is to examine the relationship between corporate governance and investment in R&D in China. It also analyzes the mechanisms of corporate governance's impact on R&D investments. On the basis of the former research in the field of corporate governance and R&D investments, 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. 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 set up the statistical to do the empirical analysis and get related results. And we conclude some useful implications for future corporation's performance and policy.