The Relationship Of Director Of Network, Executive Incentive, Technology Innovation Ability And Enterprise Value—the Comparative Study In Shanxi Province And The Central And Surrounding Provinces

In the rapid economic development of modern society, technology innovation is the most fundamental way to enhance competitiveness of the enterprise. As the principal part of national innovation, the enterprise shoulders on the responsibility of "innovation driven development". The board of directors is the "brain" of the enterprise, to make decisions, and management is the "heart" of the enterprise, to executive decisions, from the point of corporate governance structure. In the technical innovation activities, the enterprise first need to make a decision after discussing of the board of directors, and then the management is responsible for the specific implementation, last the innovations embodied in economic benefits, and on the enterprise value. The listed companies of Shanxi exist many shortcoming: single industrial structure, fewer high-tech enterprises, technological innovation ability is weak, executive incentive problem, so the overall economic strength is poor.Referring to literature from home and abroad, this paper first defines board network, the executive incentive, technology innovation ability and enterprise value, and explains the basic theory. Then analyze industrial disadvantage of Shanxi listed companies, and compare analysis to financial condition, profitability and degree of executive incentive. And then, collect and analyze basic information of independent directors, and calculate different directors' centrality using PAJEK of social network analysis software, then do descriptive statistics, correlation analysis and multiple regression analysis on SPSS, in combination with other financial indicators.This paper gets the following results through empirical research relationship with board network, executive incentive and technology innovation ability: board network has a significant positive correlation to the technological innovation ability; executive pay incentive related positively to technological innovation ability; no significant correlation between executive equity incentive and technology innovation ability; board network and has certain alternative relationship with executive pay incentive.This paper gets the following results through empirical research relationship with board network, executive incentive, technology innovation ability and enterprise value: there is significantly negative correlation of board network and executive equity incentive to corporate value; executive pay incentive and technical innovation ability related positively to enterprise value.Finally, the paper makes suggestions to Shanxi listed companies, combining with the research results and practical experience.