Study On The Influence Of Diversification Degree And Corporate Governance On Technological Innovation

Under the background that the Chinese economy has entered the New Normal and the "Innovation-driven Development Strategy" has been implemented,the impact of corporate governance of high-tech enterprises on technological innovation deserves attention.At the same time,the phenomenon of diversification is widespread in China.At this stage,whether diversification of high-tech enterprises has a role in promoting technological innovation? Should companies adopt differentiated corporate governance based on the degree of diversification to promote technological innovation? The solution of the above issues is related to the improvement of the level of the technological innovation of our country's enterprises.This article is mainly based on Technology Innovation Theory,Principal-agent Theory,Dual Principal-agent Theory and Diversified Related Theories,using a combination of fixed-effect model regression analysis,cluster analysis and comparative research methods,and using Chinese high-tech companies as samples.This article adopts 416 listed companies from 416 to 2016 in the Shanghai and Shenzhen Stock Exchanges to study the impact of corporate governance on technological innovation.At the same time,they examined the impact of corporate governance of two types of enterprises with different levels of diversification on technological innovation.The findings are as follows:(1)Overall research shows that corporate diversification,ownership concentration and board scale have inverted U-shaped relationships with technological innovation.The nature of state-owned equity,two-time concurrent positions,proportion of independent directors,compensation incentives and equity incentives are all positive with technological innovation.In relation to the relationship,the proportion of fund holdings is negatively related to technological innovation.(2)The classification research shows that in the enterprises with higher degree of diversification,the proportion of fund holdings and technology innovation have asignificant negative relationship.There is a significant positive U-shaped relationship between the scale of board of directors and technological innovation;in companies with a low degree of diversification,the two positions,salary incentives,and technological innovation all show a significant positive relationship.There are also commonalities between the two types of enterprises,that is,the nature of the state-owned equity,equity incentives and technological innovation have a significant positive relationship.Therefore,enterprises should maintain appropriate levels of diversification,ownership concentration,and the size of the board of directors.At the same time,they must take advantage of the nature of state-owned equity and the innovative advantages of two-time concurrent roles,reducing the adverse impact of institutional investors,and actively introducing independent directors to effectively promote Technological innovation.At the same time,companies should use compensation and equity incentives to promote technological innovation.For those enterprises with a higher degree of diversification,they should maintain a moderate scale of board of directors and reduce the proportion of institutional investment.For enterprises with a low degree of diversification,they should actively adopt two-time concurrent roles and pay incentives to promote technological innovation to promote technological innovation.