The Effect of Managerial Ownership on Intensity of R&D Investment

In order to study the different nature of ownership how to play a role in the relationship between corporate managerial ownership and the intensity of R&D investment, this paper uses micro data on A-share listed companies in China covering the three - year periods 2009-2011 by Excel 2010 and STATA 11.2. The results are as follows: (a) The intensity of corporate R&D investment has a significant positive correlation with the number of managers' shareholding. (b) In the firms of different nature of business ownership, managerial ownership has a different effect on the intensity of corporate R&D investment. Those show that Chinese enterprises should strengthen the equity incentive for managers to enhance their sense of ownership, thereby reduce the agency costs.