Research On The Impact Of Corporate Governance On Innovation Investment

Under the ever-changing market environment and the treacherous global situation,the ability of innovation is an important guarantee for the long-term development and profitability of enterprises.But the innovative ability of different companies is obviously quite different.Under this situation,the factors that affect the innovative ability of companies has always been the focus of theoretical fields.Since Schumpeter put forward the theory of innovation,many western scholars have actively explored the issue of innovation.They discussed and analyzed it from different perspectives,such as enterprise scale,market structure,industrial characteristics and entrepreneurship,and accumulated a lot of research literature.However,although Schumpeter's traditional innovation theory and many schools of theory developed by it have produced a lot of theoretical results and research literature,it is always difficult to explain the huge differences on the way that enterprises invest in technological innovation under similar external environment,similar company size and capability of market control.With the increasingly fierce academic discussion in this aspect,scholars have generally realized that the behaviour of company's technological innovation has distinct corporate governance attributes-that is different corporate governance systems have different on technological innovation investment.Corporate governance can affect the innovative power and ability of a company,and then the choice of technological innovation types.The realization of the above functions depends on the corporate governance structure and governance mechanism.At present,the research on corporate governance and innovation investment is relatively lagging.Mainly,there exists the following problems:first,there are more practical and descriptive studies but insufficient theoretical research;second,there are more partial studies but less overall research;third,domestic research lags behind foreign research.In view of this,this paper draws on the relevant viewpoints of innovation economics and based on modern enterprise theory,makes a thorough and systematic study of the relationship between corporate governance and innovation investment from both theoretical and empirical analysis,and explores to construct an innovation investment promotion model on the basis of the optimization of corporate governance system in order to deepen and broaden corporate governance and innovation investment.The model has been used as reference for Chinese enterprises to optimize corporate governance policies.This paper is divided into eight chapters to discuss and analyze the relationship between corporate governance and innovation investment.This paper is devoted to the study of the relationship between corporate governance and innovation investment from the perspective of modern enterprise theory.The main work and research results are as follows.Firstly,this paper collects the existing literature.It combs the origin and development of innovation economics,and analyses the evolution process of technological innovation theory.From the exogenous technological innovation in Solow model to the endogenous technological innovation in endogenous growth theory,and then to the interactive relationship between technological innovation and institutional innovation,it constructs the theoretical basis of this paper..At the same time,this paper combs and summarizes the research literature on the relationship between corporate governance and technological innovation investment,and expounds the contributions and shortcomings of existing research results.Secondly,this paper analyzes of the relationship between corporate governance and innovation investment theoretically.Firstly,the theoretical evolution of corporate governance is analyzed,and the core viewpoints of property rights theory,incentive theory and principal-agent theory are elaborated,and the theoretical analysis framework is put forward.According to the analysis of corporate governance in modern enterprise theory,corporate governance is divided into two levels:governance structure and governance mechanism.The former focuses on the prior arrangement of property rights,while the latter focuses on the restraint of agent behavior.Then,this chapter constructs the correlation models of governance structure and innovation investment,governance mechanism and innovation investment,in order to analyze the impact of governance structure factors and governance mechanism factors on innovation investment.The results show that the improvement of equity concentration is not conducive to innovation investment,and the improvement of equity balance is conducive to innovation investment;the incentive to managers is conducive to innovation investment,and the introduction of institutional investors will be conducive to innovation investment.The impact of board size on innovation investment is first promote and then suppress,and the increase of the proportion of independent directors will promote the innovation investment.Finally,this chapter constructs a correlation model from the corporate level to discuss the relationship between factors of corporate governance and heterogeneous innovation investment,and clarify the possible impact of different factors.Thirdly,empirical analysis is made on the relationship between corporate governance and innovation investment.This paper makes an empirical analysis from different levels of corporate governance(governance structure,governance mechanism).Firstly,this paper analyzes the impact of governance structure on innovation investment.The representative variables of ownership structure are used as explanatory variables to study the correlation between governance structure and innovation investment,and the nature of ownership is introduced to analyze the difference of the impact of ownership structure on innovation investment between state-owned and non-state-owned enterprises.The results show that the impact of governance structure on innovation investment varies under different ownership conditions,which is a comprehensive reflection of the principal-agent relationship between shareholders and the maximization of private benefits.Specifically,in terms of the nature of equity,the positive correlation between private enterprises and innovation investment is more significant;in terms of equity structure,under the condition of the nature of state-owned equity,equity concentration and innovation investment have a significant negative correlation,and the improvement of equity checks and balances is conducive to the increasing of innovation investment;in terms of equity nature and equity structure,the positive correlation between equity concentration and innovation investment is more significant.Among the interactive items,under the condition of the nature of state-owned equity,the improvement of ownership concentration has more significant effect on restraining innovation investment,and the improvement of equity balance has more significant effect on promoting innovation investment.Then this paper analyzes the empirical analysis of the relationship between governance mechanism and innovation investment.This chapter divides the incentives to restrict managers' behavior into two types:direct incentives to managers(agents),including incentives through salary,equity and other incentives;and indirect incentives to managers,including introducing external institutional investors' shareholding,board characteristics and other factors.Relevant stakeholders participate in corporate governance to restrain managers' innovation investment behavior.The empirical results show that:firstly,the concurrent appointment of chairman and CEO is beneficial to the innovation investment of enterprises.Secondly,there is a significant positive relationship between managers' incentive and innovation investment,but different incentive modes show certain differences.Equity incentive and R&D investment are positively correlated,and monetary incentive and R&D investment are positively "U"shaped.Thirdly,two-job concurrent tenure is more conducive to managers' incentive to drive innovation investment.Fourthly,the introduction of institutional investors and independent directors has a positive impact on innovation investment.Fourthly this paper makes empirical analysis of the correlation between corporate governance and heterogeneous innovation investment.The logit model of corporate governance and heterogeneous innovation input is constructed,that is,the influence of corporate governance factors on the choice of different types of innovation input.At the same time,the econometric model of the correlation between corporate governance and different types of innovation input is constructed as well.Empirical results show that in the choice of innovative investment mode,ownership concentration and equity checks and balances are conducive to exploratory innovation.Institutional investors' shareholding and salary incentives are positively correlated with exploitative innovation,and the ratio of board size to exploratory innovation is positively U-shaped.Fifthly,this paper puts forward policy recommendations to promote innovation investment.Based on the conclusions of theoretical research and empirical research,this paper constructs a "technology innovation promotion model based on corporate governance optimization".Based on the model,this paper puts forward the optimization measures of corporate governance oriented by technological innovation,including three levels:strengthening the promoting factors of technological innovation,weakening the restraining factors of technological innovation and controlling the contingency factors of technological innovation.,and it adjusts the heterogeneous innovation investment differently.The innovation points are as follows:Firstly,the existing research literature shows that there is a significant correlation between corporate governance factors and innovation investment,but there are more empirical studies and less theoretical analysis.Based on the property rights theory,principal-agent theory and incentive theory under the framework of modern enterprise theory,this paper constructs the correlation models of different corporate governance levels and innovation investment which reveals the mechanism of the relationship between them from the theoretical level,and adds the discussion of the relationship between corporate governance and heterogeneous innovation investment,which enriches the theoretical analysis perspective of this research.Secondly,at present,empirical studies on the impact of corporate governance on innovation investment in China mostly focus on a particular focus,while systematic studies on corporate governance as a whole are relatively few.This paper realizes the two-way and multi-dimensional discussion of corporate governance and technological innovation investment.In the empirical study,on the one hand,it combs the corporate governance factors at different levels,empirically tests the correlation between corporate governance and innovation investment;on the other hand,it divides innovation investment for different purposes into exploratory innovation and utilizing innovation.From the perspective of heterogeneity of innovation investment,this paper empirically examines the impact of corporate governance factors on different types of innovation investment,and broadens the empirical perspective of this study.Thirdly,about the relationship between corporate governance and enterprise innovation,the results of existing references are quite different,even contradictory.The reasons are different,research methods might be a affecting factor,but more importantly,the statistical caliber of data is not the same,and there are a large number of manual collections,so the data are quite different.This topic uses the data of Listed Companies in authoritative databases such as CSMAR and Wind to ensure the accuracy and validity of the research results to the greatest extent.Fourthly,a model of innovation investment promotion based on corporate governance optimization is constructed,and some measures of corporate governance optimization are put forward based on the model.Starting from the results of theoretical analysis and empirical analysis,in view of the correlation between corporate governance factors and technological innovation investment,this paper classifies corporate governance factors into three types:technological innovation promotion factors,technological innovation inhibition factors and technological innovation contingency factors.Research conclusions on factors influencing heterogeneous innovation investment is added to it,and the promotion model of technological innovation investment is constructed,and then the optimization measures of corporate governance which are beneficial to promoting innovation investment are put forward.