Research On The Influence Of Executive Career Experience On Enterprise Innovation

Innovation activities are an important means for companies to build sustainable development advantages and form core competitiveness.They are also the source of power for the country to change the overall economic growth mode.The "Report of the 19th National Congress of the Communist Party of China" pointed out that "innovation is the first driving force for development and the strategic support for building a modern economic system." Obviously,under the current situation of slowing economic growth,we will explore enterprise innovation from a micro perspective.The influencing factors undoubtedly have important practical significance.As the decision-making body of enterprise innovation activities,executives are crucial to the impact of enterprise innovation.the theory of behavioral finance and upper echelons also made the basic assumptions of the economic rationality in the market begin to loosen,and the personal characteristics of the executives began to receive attention.Rich professional experience usually helps corporate executives to form a diversified thinking structure,broad management vision,rich social resources and extraordinary courage,and is also an important path to shape compound talents.Therefore,from the perspective of non-complete rationality of executives,the exploration of corporate management activities represented by corporate innovation has become a new research hotspot in the academic field.Based on the theory of behavioral finance and upper echelons,this paper use the unique data set of executives’ experience of China’s Shanghai and Shenzhen A-share listed companies in recent years,and constructs an index,the occupational experience richness index,which measures the executive career experience from five dimensions:functional department,enterprise,industry,organization and regional type.We hope to study the content of three aspects.The first is to explore the relationship between executives’ professional experience and corporate innovation.The second is to analyze the influencing factors of executives’ professional experience and the impact of corporate innovation from the internal and external corporate governance mechanisms.The third is to further explore the influence of executives’ professional experience on corporate innovation.The research results show that the richer the professional experience of the company’s senior management(Chairman and CEO),the higher the level of innovation and efficiency of the company,and the professional experience of the executives affects the innovation of the company by influencing the social network resources and risk preferences of the executives.At the same time,the four corporate governance factors represented by market competition,financing constraints,equity checks and balances and executive shareholdings will have different effects on the relationship between executive career experience and corporate innovation.In general,the conclusion of this paper expands the related literature on the influencing factors of enterprise innovation and economic consequences of executives’ career experience,transfers the influence of generalist talents from the field of macro management to the field of micro finance,and also provides new evidence support for the recruitment and selection of high-level talents.