Firm Heterogeneity,Corporate Governance And Technology Innovation

With the economy stepping into the “new normal” phase,technological innovation has become more important to enterprise development.The 18 th Communist Party of China National Congress explicitly raised innovation driven strategy,initiating that the economy model should be changed from the old factor driven and investment driven to innovation driven,and actively promoting Chinese enterprise to be transferred them from “Made in China” to “Created in China”.Obviously,technological innovation has become an important topic for current economic development.Enterprises are the major players in technological innovation and the corporate governance is core content of modern enterprise management system,playing an important role in the innovation decision of enterprise.As for listed company,how to play the guiding role of corporate governance in the value creation of enterprise and technological innovation has always been focused on by many scholars.Perfect corporate governance system can improve efficiency of resource allocation and stimulate the creative vitality,and then promote enterprise independent innovation.Considering the existence of firm heterogeneity,the influences of corporate governance to technological innovation in different firms are certainly different.This paper takes the 595 listed companies from 2012 to 2016 as samples to investigate the influence of corporate governance on technological innovation measured by the company heterogeneity of size,nature and marketization degree.Results show that the influences of corporate governance to technological innovation for different firms exhibit significant differences.Overall,incentive mechanism facilitates enterprise innovation.The return of the fund holdings in the state-owned enterprise is not significant,while the regression result of the nonstate-owned enterprise is significant positive.Board size and technological innovation have a significant positive U type relationship in large scale corporation and state-owned enterprises,but relationship in enterprises with high marketization degree is on the contrary.Therefore,corporate governance should be matched with the characteristic of enterprises in order to promote the technology innovation.