THE IMPACT OF EQUITY STRUCTURE ON CORPORATE R&D INVESTMENT

Abstract

R&D investment has emerged as the core determinant of enterprises' competitiveness. Using the data of A-share listed companies from 2010 to 2020, this paper constructs a two-way fixed effect model to explore the impact of equity structure on corporate R&D investment. The research findings are as follows. Equity concentration exhibits an inverted U-shaped nonlinear relationship with R&D investment. Moderate equity concentration promotes R&D investment, while excessive concentration hinders it. Equity balances significantly contribute to R&D investment. Agency costs mediate the influence of equity concentration and equity balances on R&D investment, and ESG plays a moderating role. Moreover, the impact of equity structure on R&D investment varies across different ownership types. This study offers empirical support for enterprises to formulate sound equity structure and R&D investment strategies.