A Study On The Correlation Of Quoted Companies’ Director Capital With Innovation Ability

With the pace of economic globalization gradually accelerating, more and moreinternational companies participate in the competition with Chinese enterprises.Today, in the increasingly competitive market, the increase in the number ofproducts has not brought high profits. Such as Chinese mobile phone market, themarket share of homebred brand is over50%, but the industry profit margin is onlyabout20%. On the contrary, the iPhone has more than50%profit margin with only7.5%market share. It is clear that products’ Core technology and competitivenesswork through by innovation has become a sign of the market rights to price and live.March22,2012, a study co-released at the conference report of the nationalinnovation index (2011) China Technology Development Institute for StrategicStudies at the Third National Science and Technology Development Strategy. Theresults show that: Chinese Innovation Index in2010reach to70.5and got NO.20in40major countries around the world, but the local Enterprises’ innovation resourceswere still weakness.2010Chinese Enterprise Innovation sub-index to rank the fourback over2008, and the acquisition of such status of Chinese enterprises is closelyrelated foreign-funded enterprises. Many relatively indicators such as efficiencyindicators, strength indicators, quality indicators, compared with the technologicalpower is still in a backward position, what’s more some indicators even lower thansome developing countries. The analysis shows that in terms of "innovationperformance" and "corporate innovation", the independent rate of the localenterprises, technological innovation capability and core technology is still low theirdependence on foreign advanced technology is still high. How to solve the innovation of Chinese enterprises is urgently needed.The board of directors is the main part of the innovative decision. In this thesis,the pointcut is environmental regulation, the reference is board governance, and thefoundation is resources-based enterprises. Empirical analysis is our main methods,and base on defining and describing technological innovation performance andinstitutional environment, we had in-depth study on the relationship between boardcapital and enterprise innovation capability.The results of the study show that:(i) During2008to2010, the board ofdirectors’ human capital and social capital of Chinese listed companies increasedyear after year.(ii) The continued accumulation of human capital of the board willpromote enterprise innovation capability.(iii) The board of directors’ social capitaland innovation capability have the inverted "U"-type correlation. Innovationcapacity level is improving with the level of social capital begin to increasing, butwhen the social capital accumulated to a critical state, the kinds of positive effectsdisappear and change to resistance.(iv) There are interaction effects betweentechnological innovation performances and institutional environment. The results ofthis thesis can improve the system of our board of directors’ capital, and provide areference for the further construction of the improvement to board of directors.