Heterogeneous Institutional Investors,Stock Liquidity And Enterprise Technological Innovation

Enterprise technological innovation is an important driving force of economic growth and a key factor to determine a country's sustainable development.Today,with the rapid development of market economy,the technological innovation capability of an enterprise is an important basis to measure whether an enterprise can survive in a changeable market environment,and also an important reflection of its social competitiveness.Up to the national level,the government has long recognized the importance of enterprise innovation to enhance China's international competitiveness.On October 28,2017,the report of the Nineteenth National Congress of the Communist Party of China put forward "accelerating the construction of an innovative country","Innovation is the first driving force leading development and the strategic support for the construction of a modern economic system".China's future development requires innovative driving to continue to deepen in order to drive economic transformation and industrial upgrading.In recent years,China has made some achievements in building an innovative country,but in some areas,China's scientific and technological foundation is still very weak.Since the beginning of the 20 th century,China has been vigorously developing institutional investors,hoping to use the strength of institutional investors to improve the governance level of Listed Companies in China,and help China's capital market to mature.Institutional investors contribute to the improvement of corporate governance mechanism.Can institutional investors be introduced into enterprises to help Chinese listed companies strengthen their technological innovation capability internally,that is,to examine whether there is a positive relationship between institutional investors and technological innovation of enterprises? Is there any difference in the relationship between heterogeneous institutional investors and technological innovation? Furthermore,from the perspective of stock liquidity,this paper examines whether institutional investors can enhance the technological innovation capability of enterprises in the form of corporate governance.Continuing this idea,this paper starts from the relationship between institutional investors and technological innovation of enterprises,and examines the moderating role of stock liquidity in the relationship between them.Finally,it tests that the pressure-resistant institutional investors promote technological innovation through exit threats.Firstly,this paper collates the relevant literature at home and abroad,and combs the relevant theories.The basic theories related to this study mainly include principalagent theory,signaling theory and efficient market theory,which provides a theoretical basis for the following discussion of the relationship between institutional investors,stock liquidity and enterprise technological innovation.Through reviewing the relevant theories and literature,we find that heterogeneity among institutional investors exists objectively,so the impact of different types of institutional investors on enterprise innovation is also different.In the empirical study,we consider the heterogeneity of institutional investors and classify them into Pressure Resistance and Pressure Sensitive Institutional Investors.Referring to the previous research on two types of institutional investors,this paper predicts that the pressure-sensitive institutional investors will enhance the technological innovation of enterprises,while the pressure-sensitive institutional investors will not affect the technology of enterprises.Secondly,previous literatures believe that stock liquidity can improve the corporate governance level of large shareholders.As an important component of external large shareholders,institutional investors should have a positive regulatory effect on the relationship between the anti-pressure institutional investors and the promotion of technological innovation.That is,under the condition of high stock liquidity,the anti-pressure institutional investors should have a positive regulatory effect on technological innovation of enterprises.The promotion effect will be more significant.This paper chooses all A-share listed companies in China from 2009 to 2016 as samples to analyze the relationship between the shareholding ratio of pressure-sensitive institutional investors and pressure-sensitive institutional investors and technological innovation of enterprises.The results show that:(1)the shareholding ratio of pressuresensitive institutional investors is positively correlated with technological innovation capability of enterprises;(2)the shareholding ratio of pressure-sensitive institutional investors is positively correlated with enterprise technology.There is no significant relationship between innovation ability.On this basis,we further examine the moderating effect of stock liquidity on the relationship between pressure-resistant institutional investors and technological innovation of enterprises.We find that stock liquidity has a positive moderating effect on the relationship between pressure-resistant institutional investors and technological innovation of enterprises.This result shows that stock liquidity improves the corporate governance function of pressure-resistant institutional investors,and then makes them play a positive role in the relationship between pressure-resistant institutional investors and technological innovation of enterprises.It plays a more prominent role in promoting technological innovation in enterprises.Finally,we examine whether the effective path of pressure-resistant institutional investors to enhance the technological innovation capability of enterprises is to intervene in Voice or Exit.After grouping and regressing the original sample according to management compensation-company value sensitivity,we find that only in the sample with high management compensation-company value sensitivity,the pressureresistant institutional investors can promote enterprise technological innovation.This result shows that the pressure-resistant institutional investors promote enterprise technological innovation by withdrawing from the threat mechanism,rather than interfering with the phonograph.System.Further,we examine the factors that influence the exit threat to promote technological innovation.We find that:(1)in private enterprises,the exit threat can promote technological innovation,while in state-owned enterprises,the exit threat is not significant.(2)The lower the transparency of corporate information,the stronger the role of exit threat.(3)The weaker the competitiveness of the industry in which the company is located,the stronger the role of exit threat in promoting technological innovation.