The Effects Of The Corporate Governance On Innovation

With the economic globalization in the modern world, enterprises not only face the domestic market as well international market competition. To make them invincible, companies must have their own core competencies, and the company constant innovation is the source of the core competitiveness of these enterprises. Enterprise innovation must be based on a certain enterprise framework, when the institutional framework for innovation cannot meet the current requirements the system needs to be innovated to better allocate resources for the enterprise innovation and development. Corporate governance as a system framework will inevitably have an impact on Enterprise innovation. In order to help the enterprises to carry out innovation activities, the structure of corporate governance need to be improved constantly.After carefully studied the international and national related theoretical research, this paper developed a model for the regarding factors'impact under corporate governance framework and also analyzed the features of enterprise innovation from several different aspects including the board structure, ownership structure, senior managers and their incentives, and other stakeholders'impact on the enterprise innovation. Based on this it analyzed the impact on enterprise innovation under three different management modes. In the empirical study, this paper was using statistical analysis method analyzed the impact of listed Chinese auto companies'management structure on the enterprise innovation, from the following perspectives: board size, independent directors, ownership concentration, executive compensation system, employee education and corporate debt structure. Meanwhile this paper combined the empirical results to provide corresponding advice on the corporate governance in the innovation process issue for Chinese companies.