Research On Relationship Of The Trait,Risk Appetite Of Top Management Team With Innovation Investment

Innovation is what promotes the long-term development of a company which therefore gains sustainable competitiveness.Innovation is closely related to the decision of top management team and more and more attention is paid to the impact of traits of the top management team on innovation.Consequences of empirical studies are separated into two parts: Firstly,executives heterogeneity is conducive to information collection,screening,and interpretation.Cognitive and understanding level of diversity can improve the quality of decision-making and innovation performance.Secondly,executives heterogeneity,which is the source of conflict,increases communication barriers and reduces the innovation.This research focuses on the impact of executive quality on enterprise innovation investment and at the same time introduces risk factors to investigate risk appetites of different characteristics of executive team,Besides,we also investigate the relationship between innovation investment and risk appetite.thus we comprehensively study the influence of top management team on innovation investment and risk appetite.The problems we aim to solve are as follows:(1)the relationship between executive characteristics and innovation investment.(2)the relationship between executives characteristics and executive risk appetite.(3)the relationship between executive risk preference and innovation investment.The main empirical results show.The age,tenure and education level of top management team have a significant role in innovation.It is more obvious in the high-tech enterprises and non-state-owned enterprises.It is different from the existing literature,the heterogeneous in the current sample is not significant,only heterogeneous of specialty in non-tech and non-state-owned enterprises is significant.Increasing Professional and age heterogeneity can decentralized innovation risk,but a term heterogeneity leads to the company increased risk;Risk appetite and innovation investment showed a nonlinear relationship.So,the technological innovation is related to not only the traits of managers but also their risk appetites.Finally,the paper also summarizes the shortcomings existing in the study,and introduces the idea about a better model of senior management team characteristics,risk appetite and innovation investment for further studies to discuss.