An Empirical Study of Board Composition and RD Expenditure from Chinese Listed Firms

摘要

With the data of 790 Chinese listed firms, this paper investigates the relationship between board composition and R&D expenditure. The result shows that board's quality is positive to R&D expenditure. Within the executive directors' proportion from 1/10 to 1/3, or with the opposition of CEO duality, more independent directors result in negative effect on the synergy of R&D decisions or supervising R&D implementation by executive directors, which is inclined to reduce R&D expenditure. For long-term benefit of their firms, more young chairmen of the boards and the second influence director, whose professional background is R&D, product design and marketing, trend to increase more R&D expenditure? The opposition of CEO duality also lowers R&D expenditure.