Research On The Corporate Governance's Impact On Technological Innovation In The High-Tech Enterprises

With the high-speed technology updating, the technological innovation is regarded as a resource of retaining the core competition of enterprises in a changing and uncertain environment. For the high-tech enterprises, technological innovation plays the role of determinant in taking advantage of core competition and getting longer development. At present, technological innovation of Chinese enterprises depends on technology import mainly, and the technological innovation is relatively weak. Actually, technological innovation is based on the corporate governance, and the corporate governance affects the investment decision-making of technological innovation. The lower effectiveness of corporate governance restrains technological innovation of Chinese enterprises in the Transition to Market Economy.From the view of corporate governance, the theme of this paper is"The corporate governance's impact on technological innovation in the high-tech enterprises". By integrating corporate theory, innovation theory and theory of enterprise property rights, making use of the methodology in econometrics, this paper systemic discusses the relationship between corporate governance and technological innovation on a sample of high-tech enterprises. We construct two models in this paper. The first is a multiple regression model based on the cross-section data. We use the model to analyze how the structure of corporate ownership, consists of board, the incentive for managers and innovation environment influence the decision-making procedure of technological innovation. Secondly, we construct a multiple regression model based on panel data. The conclusion of the modeling analyses is consistent with the outcome of previous model. From the above analysis, it is found that a significant association between corporate governance and technological innovation. Government shareholding negatively affects technological innovation, and the concentration of equity can both damage and benefit technological innovation; Increasing the compensation of manager will contribute to technological innovation; CEO duality and outside directors will facilitate R&D investment; Innovation environment will benefit R&D in high-tech enterprises.On the analytic basis of above part, advice on the technological innovation and corporate governance issues are put forward. Firstly, decrease government shareholding and keep a moderate concentration of equity; Secondly, strengthen the incentive for managers and increase the board effectiveness in its monitoring function; Thirdly, improve innovation environment and legal system. In the final section of this paper, new direction for further research are explored.