The Relationship Between Risk-taking And Innovation Performance

With China's economy into a new normal state,China's economic structure is facing transformation and upgrading.The way drives China's economic urgent need to change.Innovation-driven strategy and the "public entrepreneurship,innovation",marking China's transformation of economic growth that optimize the economic structure to the level of national strategy.In the future,the innovation will be the core elements of economic development.The value of innovation has become increasingly prominent.As a pioneer of China's industrial innovation,China's GEM market gathered a number of high-tech,growth-oriented,innovative enterprises.These enterprises are important carrier of independent innovation in China.However,China's GEM listed companies don't do well in the innovation.Many companies need to improve innovation performance.The risk-taking of the enterprise determines the risk level that the enterprise is willing to accept in the innovation,so the relationship between risk-taking and the innovation performance of the listed companies in China needs to be further proved.From the perspective of principal-agent relationship,incentive mechanism as the driving force of enterprise human capital innovation have a certain impact on the relationship between the two.The effect also need further study.To this end,this paper selected the GEM listed companies as a research object and focusing on the relationship between these companies' risk-taking and innovation performance and the relationship between executive incentive mechanism on the relationship between the two to better guide the GEM listed companies risk control.As well to improve the GEM listed companies executive incentive mechanism to make the GEM listed companies innovative performance better.Through the WIND and CSMAR database,this paper chooses 450 panel data of 90 listed companies listed on the GEM in 2011 and 2015.The paper combines the theory of economy,finance and management,scholars' research results as a reference.It also combines of theoretical and empirical analysis,quantitative and qualitative analysis.It selects different variables to measure the executive incentive,risk-taking and innovation to make innovative study of their relationship.The study shows that there are significant negative correlations between risk-taking and innovation performance of listed companies in China.The effect of executive equity incentive is regulated.The executive compensation incentive does not have a regulatory effect.Based on the conclusion of empirical analysis,this paper puts forward some policy suggestions such as perfecting risk management and innovation mechanism,adopting more equity incentive for executives and improving R&D investment.