Research About The Impact Of Equity Structure On Enterprise's Technical Innovation

Technological innovation is the fundamental driving force of economic growth.This has been a consensus of governments and business circles. The only way for enterprises to maintain long-term competitive advantages is to concentrate on technological innovative projects. The key is to establish effective technology innovative mechanism, in order to ensure the correctness of decisions and efficiency on innovative investment. The establishment of this mechanism depends on shareholder structure arrangement or it is subjected to company's ownership structure.Specifically, it will affect company's technical innovations by the concentration of ownership, the nature of ownership, etc.According to literature analysis, we find there is only a few studies on enterprises' technical innovative ability. It still needs to supplement the studies about the impact of corporate ownership on its innovation. Based on Principal-agent Theory and Asymmetric Information Theory, we analyze the transmission mechanisms and build fixed-effect model by applying panel data of in China's manufacturing listed companies from 2012 to 2014. It draws the conclusions by regression analysis.Finally, we give proposals based on empirical results and hope to provide an institutional guarantee for the healthy development of China's enterprises. Meanwhile,the results are as below:Concentration of ownership has an inverted "U" shaped relationship with enterprise technological innovation. While Management stakes put negative influence on enterprise innovation. It is complex for the impact of state-owned stakes because there are both positive and negative effects. Institutional ownership has a positive effect on technological innovation.In empirical analysis, control variables include size, revenue growth and age of companies. Firm size shows a negative correlation with technological innovation.Revenue growth is negatively correlated to innovation input while positively related to output. Firm age is beneficial to its innovation.Studies showed that in current conditions, enterprises in China should keep appropriate concentration of ownership, introduce market competition mechanism,improve external incentive system and increase the stake of institutional investors, in order to promote enterprises' technical innovative activity.