Research on the Relationship between Internal Control and R&D Investment (Based On the Empirical Study of Gem Listed Companies)

Abstract

Based on the data of GEM listed companies from 2010 to 2015, this paper analyzes the relationship between the internal control and R&D investment of enterprise. The results show that, the internal control quality of the enterprise is positively correlated with the enterprise’s R&D investment intensity; in addition, we also find that the internal control quality of non-state-owned enterprises has a more significant effect on the enterprise’ R&D investment intensity than that of state-owned enterprises; the internal control of high-tech enterprises plays a more significant role in promoting the R&D investment intensity than that of non-high-tech enterprises. On the one hand, this paper has certain theoretical meaning on enriching the academic research of the economic consequences of internal control and of the influential factors of R&D investment. On the other hand, it provides some ways for enterprises to improve R&D investment from the internal mechanism aspect.

Keywords: GEM listed companies, Internal control, Investment, R&D


Article Review Status: Published

Pages: 72-90 (Download PDF)

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