Research On The Impact Of Business Group On Innovation Performance

Using the panel data of the business group listing on the Shanghai and Shenzhen stock market from2006to2011,we examined the impacts of the business group level on the innovation of manufacturing enterprises in China. Further study on the corporate governance structure, Institutional factors regulating effect on innovation performance. Also studied the marketization degree of equity concentration and innovation performance, degree of nationalization and innovation performance of secondary regulation. The empirical results show that firstly Group level has inverted u-shaped relationship to the innovation performance. Secondly, for corporate governance variables, nationalization and equity concentration has significant positive adjustment. Number of the board of directors has a negative regulatory role, Group positive regulation of executive pay is not very significant. Thirdly, for the Institutional factors, marketization and government fiscal support to innovation performance has a positive regulatory role. Fourthly, the marketization degree of equity concentration and nationalization and innovation performance, and innovation performance has remarkable positive secondary adjustment. The business can provide enterprises with innovation resources and platforms, but the entry barriers of the business group to build and trigger a combination of failure may cause negative effect on enterprise innovation. The paper argues that the optimization of the internal corporate governance structure and the improvement of the external system environment can reduce the negative impact of collectivization of innovation so that we can further improve the innovation performance of business group.