An empirical research on the influence of TMT characteristics on R&D investment

摘要

Characteristics of top management team (TMT) are the key factors influencing R&D investment. This paper selects food & beverage companies and biological & pharmaceutical companies as samples. These companies are A-share listed companies in Shanghai and Shenzhen stock exchange. The aim of this article is to examine the influence of TMT characteristics on R&D investment using the relevant data disclosed in their annual reports, from 2011 to 2012. The results show that: (1) The average educational level of TMT members, and the proportion of members with “output function” experience and stock owned members in TMT are positively associated with R&D investment; (2) The average age of TMT members is negatively associated with R&D investment.