Under the background of the new normal economic situation,China is facing up to the pain caused by the deceleration of national economic growth.In order to accomplish the optimization and upgrading of the industry and the economical soft-landing,which enable China to leapfrog the trap of middle-income countries,advanced capabilities of corporate innovation ought to be achieved to enhance market competitiveness.This has become a difficult point in the reform of the economic system currently.Chinese government put forward the slogan “Widespread Entrepreneurship and Innovation ” in 2015 based on the new situation,which set off an upsurge of people’s participation in innovation and entrepreneurship.The thirteenth Five-Year Plan puts forward the development concept of implementing the innovation driven development strategy,and strengthens the dominant and leading role of enterprise in innovation.And the issue of Corporate Innovation Investment has become a hot spot of practitioners and academics therefrom.Although the innovative investment activities of enterprises are inseparable from the encouragement and support of national policies,they are also affected and restricted by their own software and hardware.Both the tangible and intangible capital owned by enterprises will affect their innovative investment willingness,investment scale and performance.As an important intangible capital of a company,the Board Capital will undoubtedly have a profound impact on the company’s innovative investment activities.However,there are still many deficiencies in the current academic research on the relationship between Board Capital and Corporate Innovation Investment Decisions.Although some scholars’ theoretical deductions and empirical tests have found that Board Capital could promote the Corporate Innovation Investment Decisions,there is no consensus conclusions yet on the issues such as connotation and extension of the Board Capital,the stages and steps for Enterprise Innovation Investment Decisions,and the specific path of the Board Capital affecting the Innovative Investment Decision of the corporate,etc.In order to solve these problems,this paper divides the Board Capital into two types,namely,Board Human Capital and Board Relational Capital,and divides the Corporate Innovation Investment Decision into three stages,namely,Innovation Investment Willingness,Innovation Inputs and Innovation Performance.In view of the above,it makes a concrete analysis of the impact of different types of Board Capital on different stages of Corporate Innovation Investment Decisions.Furthermore,this paper discusses the regulation of the relationship between the Board Capital and Corporate Innovation Investment Decision by the factors such as Product Market Competition,Equity Governance and Debt Constraint.In order to deeply understand the relationship between Board Capital and Corporate Innovation Investment Decisions,firstly,this paper reviews the relevant research on the connotation,classification,and measurement of Board Capital and Corporate Innovation Investment,and summarizes relevant researches on moderating factors such as Product Market Competition,Equity Governance,and Debt Constraints that may affect the role of Corporate Board Capital as well.According to the differences in the sources of the Board Capital,this paper summarizes the Board Capital of the corporate into two categories.One is the capital derived from the individual ability of the board members,namely Board Human Capital.It includes three dimensions: Educational Level,Tenure and Professional Background.And the other is derived from the relationship between the members of the board and the external organizations,namely Board Relational Capital.It includes three dimensions: Enterprise Relationship,Government Relationship and Financial Relationship.Both of them will affect many aspects of the Corporate Innovation Investment Decisions.The process of Corporate Innovation Investment Decisions could also be subdivided into three phases: the decision on whether or not to carry out Innovation Investment,which is defined as the Innovation Investment Willingness;the decision on the amount of input in innovation activities,which is defined as Innovation Inputs;and the output through Innovation Inputs,which is defined as Innovation Performance in this paper.In addition,the company’s Innovation Performance could be further subdivided into Innovation Technology Performance and Innovation Value Performance.The former is the process in which Innovation Input is transformed into new patents and new technologies,while the latter is the process of converting new patents and new technologies into corporate performance and growth opportunities.The growth opportunity is used to measure the Innovation Value Performance,which is obtained from the breaking down market-to-book ratio by RKRV model,and can comprehensively measure the long-term value and growth potential of the enterprise.On this basis,this paper combs the theoretical system of Resource Based Theory,Resource Dependence Theory,Enterprise Innovation Theory,Competitive Advantage Theory,Corporate Governance Theory,and Debt Contract Theory,which are closely related to the main variables studied in this paper and the relationships between variables.The detailed analysis of origins and development context,core ideas,and theoretical branches of various theories as well as practical application research related to this article provides a substantial theoretical basis for the proposed research hypothesis.Through summarizing the relevant literature and theories,this paper holds that the Board Human Capital and Board Relational Capital influence Corporate Innovation Investment Decisions differently,and moreover,the influence of the two board capitals on the different processes of Innovative Investment Decisions,such as Innovation Investment Willingness,Innovation Inputs,and Innovation Performance is also quite different.In addition,Product Market Competition,Equity Governance,and Debt Constraints have significant differences in moderating the relationship between different Board Capital and different Innovative Investment Decisions.According to the characteristics of different stages of Corporate Innovation Investment Decision,we adopts Logit Regression Analysis,Tobit Regression Analysis and OLS Regression Analysis to examine the impact of Board Human Capital and Board Relational Capital on different phases of Innovation Investment Decisions,and the moderating effects of Product Market Competition,Equity Governance and Debt Constraints.The empirical results of Innovation Investment Willingness show that Educational Level,Tenure and Professional Background,dimensions of Board Human Capital,are positively correlated with Corporate Innovation Investment Willingness.The Product Market Competition has an enhanced moderating effect on the relationship between Educational Level,Tenure and Innovation Investment Willingness.Equity Governance has a weakened moderating effect on the relationship between three dimensions of Board Human Capital and Innovation Investment Willingness.Debt Constraints have a weakened moderating effect on the relationship between Professional Background and Innovation Investment Willingness.While the Board Relational Capital’s dimension of Enterprise Relationship has a positive relation with Innovation Investment Willingness,Government Relationship and Financial Relationship are just the opposite.The Product Market Competition can weaken the negative role of Government Relationship and Financial Relationship.Both Equity Governance and Debt Constraints can weaken the positive role of Enterprise Relationship,can also enhance the negative role of Government Relationship on Innovation Investment Willingness.The empirical results of Corporate Innovation Inputs found that Board Human Capital’s dimensions of Educational Level,Tenure and Professional Background have positive influence on Innovation Inputs.Product Market Competition can enhance the positive effect of Tenure,while Equity Governance can weaken the positive effect of Educational Level,Tenure and Professional Background,Debt Constraints also weaken the positive effect of Professional Background.Board Relational Capital’s dimensions of Enterprise Relationship has a positive impact on Innovation Inputs,while Government Relationship and Financial Relationship have negative impact on Innovation Inputs.Product Market Competition can weaken the negative effect of Government Relationship and Financial Relationship.Both Equity Governance and Debt Constraints can weaken the positive effect of Enterprise Relationship,and enhance the negative effect of Government Relationship and Financial Relationship on Innovation Inputs.Compared to Innovation Investment Willingness,Product Market Competition and Equity Governance have less influence on the relationship of Board Capital and Innovation Inputs;and Debt Constraints has more influence on the relationship of Board Capital and Innovation Inputs.The empirical results of the Corporate Innovation Performance show that Board Human Capital’s dimensions of Educational Level,Tenure and Professional Background have positive effect on the Innovation Value Performance.The degree of Product Market Competition weaken the positive effect of Educational Level,and Equity Governance enhance the positive effect of Tenure,Debt Constraints also enhance the positive effect of Tenure and Professional Background on Innovation Value Performance.Board Relational Capital’s dimensions of Government Relationship and Financial Relationship have positive impact on Innovation Technology Performance.Product Market Competition can enhance the positive effect of Government Relationship,and both Equity Governance and Debt Constraints enhance the positive impact of Financial Relationship.Board Relational Capital’s dimensions of Enterprise Relationship,Government Relationship and Financial Relationship are positively correlated with Innovation Value Performance.The Product Market Competition can weaken the positive role of Enterprise Relationship and Financial Relationship on Innovation Value Performance.Based on the above empirical results,we suggest that enterprises should balance the development of the Board Human Capital and Board Relational Capital,not only to maintain the investment scale of innovation activities,but also to curb excessive investment,to realize the overall balance between total output of innovation and output efficiency.At the same time,we must correctly understand the positive and negative effects of internal and external factors in the market such as Product Market Competition,Equity Governance,and Debt Constraints to achieve profitability and avoid disadvantages,in order to give full play to the role of Board Capital in the decision-making process of Corporate Innovation Investment.Finally,based on the conclusion of empirical analysis,this paper puts forward relevant policy recommendations for the formulation of Corporate Decisions,Government Policies and Laws,and looks forward to future research based on the deficiencies of this article.The research on the relationship between the Board Capital and Corporate Innovation Investment Decision expands the research horizon of the influencing factors of corporate innovation.It is of great significance to improve Corporate Innovation Investment Decision,increase the efficiency of Innovation Inputs,lead Innovation in Economic Development,and achieve the ambitious goals of building an innovative country. |