Based on the data of GEM listed companies from 2010 to 2015, this paper analyzes the relationship between the internal control and R&D investment of enterprise. The results show that, the internal control quality of the enterprise is positively correlated with the enterprise’s R&D investment intensity; in addition, we also find that the internal control quality of non-state-owned enterprises has a more significant effect on the enterprise’ R&D investment intensity than that of state-owned enterprises; the internal control of high-tech enterprises plays a more significant role in promoting the R&D investment intensity than that of non-high-tech enterprises. On the one hand, this paper has certain theoretical meaning on enriching the academic research of the economic consequences of internal control and of the influential factors of R&D investment. On the other hand, it provides some ways for enterprises to improve R&D investment from the internal mechanism aspect.
Keywords: GEM listed companies, Internal control, Investment, R&D
