Study On The Board Interlocks,Firm Innovation And Firm Value

With the rapid development of science technology and artificial intelligence,China’s manufacturing industry is facing a severe test.The manufacturing industry must constantly innovate to survive in the global competition.Therefore,the innovation strategy is directly related to the survival and development of the company in the future.The board of directors decides on corporate strategy.Different behavioral characteristics and ways of thinking influence the decision-making judgment.The close similar relationship between individuals also affects decision-making.In this context,it is of great significance to explore the mechanism of the relationship between the characteristics of the manufacturing board and the influence of firm innovation on the value of the firm.This paper uses the Shanghai and Shenzhen A-share manufacturing data to analyze the relationship between board of directors,firm innovation and firm value.Firstly,this paper reviews the relevant research background and research significance,and then proposes the research methods and content.Secondly,it defines the related concepts such as board interlocks,firm innovation and firm value,and analyzes relevant researches on the relationship between the three parties at home and abroad and makes some review.Thirdly,by the analysis of the theoretical basis of this paper,combined with the Upper Echelons Theory,Similarity and Attraction Theory,Innovative Theory and the aforementioned scholars’ research results,this paper puts forward the hypothesis.Then,this paper uses four models to examine the relationship between board interlocks and firm value,board interlocks and firm innovation,the relationship between innovation input and corporate value,and the intermediary role of innovation.Finally,based on this paper’s conclusions,this paper puts forward corresponding suggestions,lacks of this research and the future research prospects according to the current trends.Through descriptive statistics,correlation test,regression analysis and robustness test,this paper draws the following conclusions:In the relationship between directors’ association and firm value,it is found that the total interlocks between independent directors and chairman has a positive effect on the firm value,but the total interlocks between non-independent directors and chairman has a negative effect on the firm value.That is,the higher similarity characteristics between the independent director and the chairman,the more value of the firm can get,and the higher heterogeneity of the characteristics between the non-independent director and the chairman,the more value of the firm will be realize.In detail,the age and academic interlocks between independent directors and the chairman can promote the realization of firm value,rather than the age,academic interlocks between non-independent directors and the chairman.The interlocks of gender,financial and educational characteristics between directors and the chairman are negatively correlated with firm value.In terms of board interlocks and firm innovation,it is found that the interlocks of age between independent directors and the chairman promote the investment of firm innovation,while the interlocks of age between non-independent directors and the chairman restrains the innovation investment;The interlocks of education between independent directors and the chairman have a significant positive impact on firm value,and the interlocks of education between non-independent directors and the chairman also do.The interlocks of financial between independent directors and the chairman are positively related to corporate value,and and the connections of financial between non-independent directors and the chairman also does.About the research of innovation and enterprise value,it is found that firm innovation can promote the realization of firm value and has a great effect on long-term enterprise value.About the mediation effect test,it is found that the age and finance interlocks between independent directors and the chairman influence firm value by influencing firm innovation,and the age,finance and education interlocks between non-independent directors and the chairman play the same role.There also have other influence factors.The research in this paper has improved the related research of enterprise value,which helps enterprises to find breakthroughs in increasing value.At the same time,it provides a new reference for the company to select directors.