Control right paradox, compensations of control right cost and R&amp;D investment

Science Research Management ›› 2015, Vol. 36 ›› Issue (8) : 86-95.

Control right paradox, compensations of control right cost and R&D investment

Ran Rong¹, Wang Ding¹, Xie Yi²

Author information +

History +

Abstract

Considering the perspective of Private Benefits of Control(PBC) Paradox, this paper has studied the effects and mechanism of the decisions on R&D investment of High and New Technology Enterprises presided by controlling shareholder with inner benefits motivation. We argue that, firstly, the level of PBC and R&D investment expenditure and intension mainly shows an inversed-U shape tendency. Secondly, there exists difference effects among different kinds of PBC. A positive incentive marginal effect of moderate PBC on R&D investment expenditure and intension is remarkably suggested in empirical tests following marginal decrease rule. Then, the same positive effect of excessive PBC on R&D investment expenditure is found, but excessive PBC does not show any effect on R&D investment intension. Moreover, the positive effect of low PBC on R&D investment expenditure and intension is very weak, and this suggests there is not any incentive effect on controlling shareholders. Lastly, there are not any interesting evidences if the ownership of actual controlling shareholders is involved in the empirical tests mentioned before.

Key words

controlling shareholder / moderate control benefits / R&D investment intension / R&D investment expenditure

Cite this article

EndNote

Ris (Procite)

Bibtex

Download Citations

Ran Rong, Wang Ding, Xie Yi. Control right paradox, compensations of control right cost and R&D investment[J]. Science Research Management. 2015, 36(8): 86-95

References

[1] 卢馨,郑阳飞,李建明. 融资约束对企业R&D投资的影响研究——来自中国高新技术上市公司的经验证据[J]. 会计研究, 2013(5): 51-58. Xin Lu,Yangfei Zhen,Jianming Li. Research on the impact of financing constraints on corporate r&d investment——evidence from the hi-tech listed companies in china[J]. Accounting Research, 2013(5): 51-58. [2] 贺勇,何红渠. 民营企业集团、控股股东支持与R&D投资——融资约束情境下的调节作用与中介作用[J]. 科学学与科学技术管理, 2014(3): 86-98. He Yong,He Hongqu. Private business group, controlling shareholder propping and r&d investment: Moderating and mediating effects in the context of financing constraints[J]. Science Of Science and Management of S.&T, 2014(3): 86-98. [3] 杨建君,盛锁. 股权结构对企业技术创新投入影响的实证研究[J]. 科学学研究, 2007, 25(4): 787-792. YangJianjun,Sheng Suo. An empirical study of the effects of corporate ownership structure on technological innovation input[J]. Studies in Science of Science, 2007, 25(4): 787-792. [4] 胡国柳,裘益政,黄景贵. 股权结构与企业资本支出决策:理论与实证分析[J]. 管理世界, 2006(1): 137-144. HuGuoliu,Qiu Yizheng,Huang Jinggui. Ownership structure and corporate spending decision: Theory and empirical analysis[J]. Management World, 2006(1): 137-144. [5] Coase, R H. The firm, the market, and the law[M]. University of Chicago press, 2012. [6] 夏冬. 所有权结构与企业创新效率[J]. 南开管理评论, 2003(3): 32-36. Xia Dong.Efficiency of firm innovation and ownership structure[J]. Nankai Bussiness Review, 2003(3): 32-36. [7] 郝颖,刘星. 大股东自利动机下的资本投资与配置效率研究[J]. 中国管理科学, 2011(1): 167-176. Hao Ying,Liu Xing. Study on capital investment and allocation efficiency under large shareholders' self-interest motivation[J]. Chinese Journal of Management Science, 2011(1): 167-176. [8] 冉戎,郝颖. 终极控制、利益一致性与公司价值[J]. 管理科学学报, 2011(7): 83-94. Ran Rong,Hao Ying. Research on reasonable private benefits of control and excessive private benefits of control: Small shareholders' perspective[J]. Journal of Management Sciences in China, 2011(7): 83-94. [9] Grossman, S, Hart, O. One Share/One Vote and the Market for Corporate Control[J]. Journal of Financial Economics, 2007, 20(88): 175-202. [10] La Porta, R, Lopez-De-Silanes, F, Shleifer, A, et al. Investor protection and corporate governance[J]. Journal of Financial Economics, 2000, 58(1): 3-27. [11] Andres, C. Large shareholders and firm performance—An empirical examination of founding-family ownership[J]. Journal of Corporate Finance, 2008, 14(4): 431-445. [12] Cronqvist, H, Fahlenbrach, R U D. Large shareholders and corporate policies[J]. Review of Financial Studies, 2009, 22(10): 3941-3976. [13] Wu, X, Wang, Z. Equity financing in a Myers-Majluf framework with private benefits of control[J]. Journal of Corporate Finance, 2005, 11(5): 915-945. [14] 贾明,张喆,万迪昉. 控制权私人收益相关研究综述[J]. 会计研究, 2007(6): 86-93. Jia Ming,Zhang Zhe,Wan Difang. A review of private benefits of control[J]. Accounting Research, 2007(6): 86-93. [15] 刘少波. 控制权收益悖论与超控制权收益——对大股东侵害小股东利益的一个新的理论解释[J]. 经济研究, 2007(2): 85-96. LiuShaobo. The paradox of private benefits of control and excessive benefits of control: A new theoretical explanation of large shareholders' expropriation of small ones[J]. Economic Research Journal, 2007(2): 85-96. [16] 郝颖,刘星. 基于控制权私利的投资效率与挤占效应研究[J]. 科研管理, 2010, 31(3): 165-170. Ying Hao,Xing Liu, 2010, 31(3): 165-170. [17] Ehrhardt, O, Nowak, E. The effect of IPOs on german family-owned firms: Governance changes, ownership structure, and performance[J]. Journal of Small Business Management, 2003, 41(2): 222-232. [18] Holmén, M, Högfeldt, P. Pyramidal discounts: Tunneling or overinvestment? * [J]. International Review of Finance, 2009, 9(1-2): 133-175. [19] 冉戎,刘星. 合理控制权私有收益与超额控制权私有收益——基于中小股东视角的解释[J]. 管理科学学报, 2010(6): 73-83. Ran Rong,Liu Xing. Research on reasonable private benefits of control and excessive private benefits of control: Small shareholders' perspective [J]. Journal of Management Sciences in China, 2010(6): 73-83. [20] Zhang, G. Ownership concentration, risk aversion and the effect of financial structure on investment decisions [J]. European Economic Review, 1998, 42(9): 1751-1778. [21] Francis, J, Smith, A. Agency costs and innovation some empirical evidence[J]. Journal of Accounting & Economics, 1995, 19(94): 383-409. [22] Childs, P D, Triantis, A J. Dynamic R&D investment policies [J]. Management Science, 1999, 45(10): 1359-1377. [23] Lee, P M, O'Neill., H M. Ownership structures and R&D investments of US and Japanese firms:Agency and stewardship perspectives [J]. The Academy of Management Journal, 2003, 46(2): 74-100. [24] 任海云. 股权结构与企业R&D投入关系的实证研究——基于A股制造业上市公司的数据分析[J]. 中国软科学, 2010(5): 126-135. Ren Haiyun. Relationship between ownership structure and R&D inputs: evidence from listed manufacturing companies in china[J]. China Soft Science, 2010(5): 126-135. [25] Hsu, H E. Institutional ownership, capital structure and R&D investment [Z], 2011. [26] 肖海莲,唐清泉,周美华. 负债对企业创新投资模式的影响——基于R&D异质性的实证研究[J]. 科研管理, 2014(10): 77-85. XiaoHailian,Tang Qingquan,Zhou Meihua. The impact of debt on firms' innovation investment mode: an empirical research on R&D heterogeneity[J]. Science Research Management, 2014(10): 77-85. [27] Shleifer, A, Vishny, R W. A survey of corporate governance [J]. The Journal of Finance, 1997, 52(2): 737-783. [28] Driver, C,Guedes, M J O C. Research and development, cash flow, agency and governance: UK large companies [J]. Research Policy, 2012, 41(9): 1565-1577. [29] Heckman, JJ. Sample selection bias as a specification error [J]. Econometrica: Journal of The Econometric Society, 1979: 153-161. [30] 吴斌,黄明峰. 企业绩效、高管人力资本特征与控制权配置——基于我国中小企业板风险企业的经验数据[J]. 中国软科学, 2011(4): 161-174. Wu Bin,Huang Mingfeng. Firm performance, human resources' characteristic of senior managers and control right allocation: evidence from small and medium boards' venture enterprises in China [J]. China Soft Science, 2011(4): 161-174.