Abstract：
In this paper, we carry out an empirical research about the influence of the Chinese GEM companies’ institutional investors on R&D expenditure during the period from 2009 to 2011. Taking into account the number & the annual changing number of institutional investors and the category the institutional investors into securities funds, brokerage firms, social security funds, QFII and others, we find that: (1)Institutional investors have a positive effect on GEM companies’ R&D because of institutions superiority and institutions activism. (2) The positive effect on R&D expenditure by GEM institutional investors is significantly stronger than the other listed companies. (3)Number and changing number of institutional investors also show positive impact. In addition, we also find that security fund has significantly positive influence.
2015 
