The Impact of Governance Structure on R & D Investment in Chinese Listed Family Firms under the Institutional Environment of Marketization

摘要

The Pooled OLS model is used to analyze whether governance structure such as family ownership, management, and control can actually influence R & D investment in Chinese family firms by application of the listed companies from the CSMAR database. After controlling for size, debt, age, profitability and growth, the positive impacts of family ownership and family management on R & D and the negative impact of family control on R & D are found. The other research question explored is whether the moderating effects of institution environment exist in the sample. Institution environment variable and its intersection terms with governance structure are added to the models respectively. Meanwhile, the positive impacts of family ownership and family management on R & D are weaker while the negative impact of family control is weaker provincially in a better institution environment. Regarding the institution environment itself, it shows a consistent positive impact on R & D investment. Meanwhile a substitution effect between the institution environment and the family governance structure is found.