Does Executive Power impact on R&D Investment? A Grouping Study of Media Attention and Institutional Environment

This study explored executive power’s influence on corporate R&D investment based on social psychology theory. It also examined the impact of media attention and institutional environment on the relationship between executive power and enterprise R&D investment as an external governance mechanism. Empirical verification was carried out using data on listed companies on China's small and medium-sized board and growth enterprise market from 2013 to 2018. The results show a significant positive correlation between executive power and corporate R&D investment. Further research reveals that ownership power, organizational power, and reputational power significantly promote enterprises’ R&D investments. Expert power has no significant impact on R&D investment. In enterprises with lower media attention, the influence of executive power on R&D investment is more significant. In enterprises with a poorer institutional environment, the influence of executive power on R&D investment is more significant.