The Relationship between the Separation of Cash Flow Right and Control Right and Firms' R&D Investment

By the data of 148 listed firms in China from 2004 to 2006,this paper analyzes the relationship between the separation of cash flow right and control right and RD investment. The results show that the separation between the cash flow right and control right is significantly negative with firms' RD investment,which only exist in the hi-tech listed firms by further analyses and not in non-hi-tech listed firms. That means ultimate controller is more inclined to acquire self-interest by means of the separation of cash flow right and control right in the hi-tech listed firms.