Equity Structure、Executive Incentive And Innovation Effect

Innovation is the source of economic growth in a country or region,and it is also the key factor to promote economic and social development.With the rapid development of China’s comprehensive national strength and economic,how to maintain and continue to enhance the national innovation ability,enhance the comprehensive national strength and flourish in the global competition,is one of the most urgent problems to be solved.Enterprise as the main body of innovation in the micro level of the national innovation system,the improvement of its innovation capability is the source of the innovation capacity of the macro innovation entities,such as industry,region and even the state,and is attracting more and more attention from the whole society.Xi Jinping’s report at 19th CPC National Congress affirmed the implementation effect of the innovation driven development strategy:since the implementation of the innovation driven development strategy,the construction of the innovative country has achieved remarkable results,and major scientific and technological achievements emerge in an endless stream.At the same time,the report clearly put forward theinnovation is the primary driving force for development,and it is the strategic support for building a modern economic system,emphasis will continue to strengthen the construction of national innovation system,the innovation into the core layer of the overall national development strategy in the construction of enterprise centered,market-oriented depth fusion technology innovation system,and emphasizes the cultivation of small and medium sized enterprises and technology support personnel.With the guidance of thereport at 19th CPC National Congress,the innovation activities at the enterprise level are the necessary prerequisite for the construction of the system of technological innovation.Deep analysis of enterprise innovation decision mechanism:corporate governance as the core of modern enterprise system,the enterprise decides the allocation of resources,is the basic standard for enterprise operation;corporate governance as a basis for the system of enterprise technology innovation,is the decisive factor of enterprise’s technological innovation;it is noticeable that good corporate governance mechanism is the key of enterprise technology innovation the successful implementation of the.Therefore,the implementation of innovation activities will need more reasonable and perfect corporate governance mechanisms to support.The improvement and optimization of the corporate governance mechanism can not be separated from the solution of two major contradictions under dual principal-agent theory:the settlement of the contradiction between the major shareholder and other shareholders needs to be rationally arranged in the equity structure.The settlement of the contradiction between the trustor and the agent depends on the setting of the executive incentive mechanism.In addition,the arrangement of the ownership structure affects the basic system of the company and determines the actual controller of the company.It is the core issue in the corporate governance mechanism.The establishment of executive incentives is a major measure to mitigate moral hazard and adverse selection,and it is also a favorable guarantee for reducing information asymmetry in corporate innovation activities.Therefore,this study selects the equity structure and the executive incentive mechanism in the corporate governance mechanism to explore the innovative effects of the corporate governance mechanism.The innovation effect of this article mainly studies the influence of equity structure and executive incentives on the innovation activities of listed companies.It includes the innovative effects of equity concentration,the innovative effects of equity checks and balances,the innovative effects of executive stock incentives,and the innovative effects of executive compensation incentives.In particular,the research content and conclusion mainly include the following aspects:First,the system of corporate governance mechanism innovation effect theory system is set up.The theoretical basis of the innovation effect of corporate governance mechanism is thoroughly combed,labor theory of value and economic growth theory lay a theoretical foundation for the innovation effect of corporate governance mechanism;innovation theory indicates the direction of innovation effect of corporate governance mechanism;the dual principal-agent theory highlights the major contradictions that listed companies need to solve in the process of realizing value creation and economic growth.Second,the research results at home and abroad are combed and reviewed in order to find the theoretical support and empirical evidence of the research on the innovation effect of corporate governance mechanism.The research results on the innovation effect of the corporate governance mechanism abroad have laid a theoretical foundation for the topic selection of this article.However,due to the huge differences in the governance mechanism of listed companies and the socio-economic and political environment at home and abroad,the foreign research ideas cannot be completely adopted.The domestic research on the innovation effect of corporate governance mechanism has made a lot of empirical evidence,but the research content is lack of integrity and systematicness.Based on the actual situation of China,based on the double principal-agent theory,this paper systematically studies the correlation effect between equity structure、executive incentive and innovation decision-making,innovation input and innovation output process.Third,this article describes the evolution path and research mechanism of ownership structure,executive incentives and their innovation effects.Firstly,based on the analysis of the logical starting point of innovation,based on the innovative concept of resource allocation,we propose to build a corporate governance mechanism that supports innovation.Secondly,it puts forward the basic requirements of the research on the innovation effect of corporate governance mechanism.The selection of agent variables should reflect the process characteristics of innovation,and the setting of corporate governance mechanism must have dynamic characteristics.Finally,it shows that the innovation effect of corporate governance mechanism should be guided by value creation,and the ultimate goal is to achieve sustainable business and economic growth.This part depicts the mechanism and research idea of the relationship between corporate governance mechanism and corporate innovation activities,and constructs a complete logical correlation system for the third,fourth and fifth chapters.Fourth,from the perspective of dual principal-agent theory,we deconstruct corporate governance mechanism.Taking equity structure and executive incentive as main research contents,we build a correlation model of corporate governance and innovation,and conduct empirical tests and analysis.Using the non balanced panel data of A shares listed companies,this paper makes an empirical analysis on the relationship between equity structure,executive incentive and corporate innovation activities.The results show that ownership concentration is significantly negatively correlated with corporate innovation activities.Equity checks and balances,executive equity incentives and executive compensation incentives can significantly promote corporate innovation activities.In addition,the macro economic variables,the degree of marketization,have played an important external role in promoting enterprise innovation activities.Based on this,it is proved that the ownership structure and executive incentive mechanism are effective to solve the dual principal agent contradiction in the innovation activities of Listed Companies in China.Fifth,according to the different characteristics of the ownership structure and executive incentive mechanism of listed companies under different property rights,the corporate governance mechanism is optimized respectively.The A shares of listed companies Chinese state-owned enterprises and private enterprises as the research object,the empirical test included in the comparative analysis,in analyzing the relation between ownership structure,executive incentive and enterprise innovation,and discusses the influence of property right on these relationships.The empirical results show that,relatively speaking,private enterprises are more innovative.Based on this research,we further examined the significant differences between the equity structure and executive incentives in listed companies with different property rights,and the relationship with innovative activities.The empirical results show that Equity checks and balances、executive equity incentive can better promote state-owned enterprise innovation,executive compensation incentive can promote private enterprise innovation,while the negative impact of ownership concentration on innovation is more significant in private enterprises.Sixth,The model of the relationship between equity structure innovation effect,executive incentive effect and value creation was constructed.It proves that ownership structure and executive incentives are the contingent factors of corporate governance that are invested in innovation to enhance corporate value based on the value orientation of the innovation effect of corporate governance mechanism,regardless of the optimization of corporate governance mechanism or the enhancement of enterprise innovation capability,we must ultimately achieve value creation and promote economic growth.The empirical results show that investment in innovation is to enhance corporate value in promoting factors;the high degree of equity checks and balances,the impact on the enterprise value innovation positive moderating effect is not significant;the lower degree of Equity checks and balance,has significant relationship in the positive regulation of innovation investment and enterprise value.Excessive degree of equity concentration is significant in negatively regulating the relationship between innovation input and corporate value;the lower degree of ownership concentration,its negative adjustment effect on the impact of innovation input on firm value is not significant.The positive adjustment effect of executive equity incentives and executive compensation incentives is significant.This proves that the optimization of domestic listed company’s governance mechanism can’t blindly use foreign research results,can’t exaggerate the advantages of equity checks and balances,we must combine the actual situation of the governance structure of listed companies in China,set up a corporate governance mechanism in line with the actual situation of listed companies in China.So,by setting up and perfecting corporate governance mechanism to promote innovation,enhance the competitiveness of enterprises,and to promote the enterprise value,is the integration of system innovation and technology innovation innovation theory results,will eventually achieve economic growth,enhance the comprehensive national strength.The research innovation of this paper is mainly reflected in the following aspects:First,with the double principal-agent theory,and points out that good corporate governance mechanism is the key to promote enterprise innovation,put forward to innovation oriented optimization of corporate governance mechanism,respectively established the ownership structure,executive incentive and innovation process relationship model,the correlation mechanism of corporate governance and innovation activities is analyzed from theory.Second,in the empirical test and research analysis of the innovation effect of corporate governance mechanism,it has reached a systematic,process and dynamic integration and high unity.Achieved systematic research on the relationship between institutional innovation and corporate technological innovation,from the innovation decision to the innovation input to the innovation output a series of innovation activities research process,optimizing the dynamics of corporate governance mechanisms for different property rights.Third,the model of the relationship between equity structure innovation effect,executive incentive effect and value creation was constructed.Considering that corporate governance is a contingent influence factor of innovation input on corporate value,combined with the actual situation of corporate governance in China’s listed companies,it is proposed that we should take innovation as the guidance and value creation as the goal to optimize corporate governance mechanism.