Study On Board Structure And Technological Innovation Investment Of Listed Companies

This paper aims at studying which type of board structure can better play its role as largest decision maker from the perspective of ultimate controller. This type of board structure views technology innovation as a mission and try its best to increase investment, so that the enterprises can be more competitive. Taking listed companies of China for study and using the unbalanced panel data analysis methods, the paper quantitatively makes a research on how the degree of ultimate controllers restrict each other、the ratio of executive directors and non-executive directors coming from ultimate controlling companies、whether the first ultimate controller is government-owned and the background heterogeneity of independent directors influence the investment in technological innovation of listed companies. Then continue to study first ultimate controller owns what type of property rights, and make the same analysises by samples of different government level property rights, then make a comparison by these different analysis results. Finally, carry out a relevant research using samples of agricultural listed companies, and analyze the difference between the results of agricultural listed companies and all listed companies.This paper selected for882listed companies of2008-2012as samples to study, the results show that:1. The ratio of executive directors coming from ultimate controllers makes a non-significant positive effect on the investment in technological innovation; The ratio of non-executive directors coming from ultimate controllers makes a non-significant positive effect on the investment in technological innovation. Although the test results are not significant, but make a comparison of two coefficients in front of executive and non-executive, we can see that, the ratio of executive directors from the ultimate controllers makes a greater effect on the investment in technological innovation than the ratio of non-executive directors.2. The background heterogeneity of independent directors has a very significant positive effect on the investment in technological innovation.3. Whether the first ultimate controller is the government-owned doesn’t have a significant effect on the investment in technological innovation.4. The degree of ultimate controllers restrict each other makes a significant positive effect on the investment in technological innovation of listed companies;5. Based on agricultural listed companies, the effects board structure make on investment in technological innovation are largely different from the results made from all the samples in the paper.6. In current time, shareholding structure of listed companies in China is still state-led. In all882samples, there are622companies have the government ultimate controller, accounting for70.52%; there are260companies have the non-government ultimate controller, accounting for only29.84%. The listed companies of different ultimate ownership have different board structures, and have different influences on investment in technological innovation of enterprises. Because of restrictions of sample size, we can’t come with the conclusions like what influence does they differ from each other.