Empirical Study on the Relationship between RD Investment, Capital Structure, and Firm Size of China Private Listed Companies

摘要

The practices of Anglo-American enterprises have proven that capital structure and R&D investment have negative correlation relationship, and the firm size makes positive and significant contribution to the R&D investment, which gives support to the Schumpeterian hypothesis to certain degree. In fact, China's economic development is at the stage of industrialization. Whether the findings in China reach a similar experience conclusion of the relationship between R&D investment, capital structure, and firm size of China private listed Companies? Based on the data from the listed private companies (these can be divided into the founding family-controlled and non-founding family-controlled according to the different nature of their control) in China's A shares and B shares, this study made an attempt to explore the empirical relationship between R&D investment and firm size along with capital structure, in the hope that it will provide some implications for the government and enterprises.