The Effect Of CEO Capital And Board Independence On Entrepreneurial Orientation

As a concept and mode of strategic decision, entrepreneurial orientation has become a hotspot in the field of strategic management, and attracts a large amount of theoretical and empirical research. In the decision-making process of entrepreneurial orientation, the top manager CEO as the initiator and leader will undoubtedly play a key role. From the perspective of dynamic capability, the past research on the effect of entrepreneurial orientation of CEO capital mainly concentrated in the foreign countries. Given that China is in the special period of economic transition and the growth characteristics of the gem listed companies, whether the results are applicable or not is also questionable. In addition, the board also is the important role of factors which influence the company’s strategy formulation, so that the relationship between directors and CEO has always been a hot issue in the field of corporate governance. Thus how to understand and deal with the relationship between them has a crucial influence on the company’s strategic decision.Based on this, this study selected the gem listed companies in China from 2012 to 2014 as sample, and construct panel data to have an empirical analysis to the effect of CEO capital on the enterprises’entrepreneurial orientation. on the basis of it, the paper also introducts board independence as a moderator variable to investigate the relationship between the board and CEO. The empirical results show that the CEO education background, industry experience, and political association have significant positive effect on entrepreneurial orientation; the business association of CEO has a significant negative effect on entrepreneurial orientation; CEO’s international experience has no significant effect on entrepreneurial orientation. Furthermore, when CEO and the chairman of the board of directors have two separate cases, the effect of CEO capital on entrepreneurial orientation is more significant; The ratio of independent directors has no significant regulation effect on the relationship between CEO capital and entrepreneurial orientation. The conclusion of the study has a positive reference for the CEO appointment, board structure and entrepreneurial orientation design.