Relationship Between Ownership Structure, Technology Innovation And Firm Performance

Along with economic restructuring and industrial upgrading in China, the state focuses on promoting the development of strategic emerging industry. The relationship study among ownership structure, technology innovation and firm performance helps strategic emerging enterprises to improve ownership structure, increase technology innovation and enhance firm performance. At the same time, it has made important contributions for steady and rapid economic development.Based on the theoretical basis of the principal-agent theory, stakeholder theory and innovation theory, the paper uses seven years annual reports of strategic emerging enterprises in Shanghai Stock Exchange and Shenzhen Stock Exchange, and selects 319 samples from them. The paper builds models to make descriptive statistics, multiple linear regression and intermediary effect analysis with Eviews6 and SPSS18. Then it discusses the relationship between ownership structure, technology innovation and firm performance. In the paper, it uses Managerial Rate of Return on Common Stockholders’ Equity to represent the firm performance, with the nature of the controlling stake, ownership concentration and balance to measure ownership structure, uses R&D investment to measure technology innovation. In addition, it attempts to introduce technology innovation as the mediating variable between the ownership structure and firm performance.Through empirical research, the results found that technology innovation has significant positive influence to firm performance. What’s more, technology innovation has significant hysteretic effect to firm performance in our strategic emerging listed enterprises.Empirical results show that the ownership concentration and balance have the positive relation with strategic emerging listed enterprises’ firm performance, so do corporate shares and firm performance. While state-owned shares has a non-significant negative relation with strategic emerging listed enterprises’ firm performance. It has no significant relation between the proportion of executives’ shares and firm performance.Results show that there exists a non-significant positive correlation between the ownership concentration and balance and technology innovation. The ratio of the state-owned shares is significantly correlated with the technology innovation of strategic emerging listed enterprises; the higher ratio the shareholders own, the lower impact it has. Moreover, corporate shares and executives’ shares have the positive relation with technology innovation.Technology innovation has mediating effect on ownership structure and firm performance in our strategic emerging listed enterprises. Technology innovation not only has mediating effect on ownership concentration and balance with firm performance, but also on the ratio of corporate shares and firm performance.According to empirical results, this paper puts forward some policies and suggestions in view of relative theory, such as appropriate ownership concentration, mixed ownership structure and the intermediary effect of technology innovation. At the same time, it also points out the shortage and the possible research directions of the study in future.