In order to study the influence of corporate governance in SMEs, according to the Resource Dependence Theory and Upper Echelon Theory, this paper studies the effects of board capital and CEO characteristics on R&D input about listed companies on SME board from 2010 to 2014. The results indicate that board human capital and social capital, CEO education and governmental background are supportive to R&D input. Additionally, the interaction between CEO's high educational level and board capital motivates the R&D expenditure, and the effect is more obvious in less developed cities. The interaction between CEO's governmental background and board human capital has adverse effect on R&D, which is more severe in less developed cities. The interaction between CEO's governmental background and board social capital has positive effect on R&D, which is more significant in developed cities. This paper emphasizes the interaction between board capital and CEO characteristics, and deepens the research on corporate governance and R&D investment through differentiating regional developing degree.
Communication of Finance and Accounting