Research On The Influence Of Overseas Background On The Innovation Ability Of Chinese Listed Companies

Innovation is the soul and inexhaustible driving force of development and progress for a country and ethnic group,for a company,it is a necessary condition for finding vitality and development.An enterprise's ability to innovate is an important basis for measuring its ability to survive in complex and volatile market conditions.The 19 th National Congress of the Communist Party of China puts forward: Innovation is the first driving force for development,emphasizing the need to firmly follow the path of innovation-driven development.In recent years,as the country vigorously promotes the independent innovation strategy of enterprises,the innovation capability of enterprises has been greatly improved,but compared with the requirements of the knowledge economy,there are still many shortcomings.The world today shows the situation of economic globalization and regional economic integration,globalization trends are opportunities and also challenges for companies,how to grasp the trend of world economic development,explore the potential with a global perspective,objectively examine the constraints and promote the development through continuous reform and innovation,this is a topic worth exploring and also a serious challenge.With the continuous deepening of China's economic openness,more and more listed companies have foreign-related backgrounds.Foreign capital has participated in the operation of domestic enterprises in many different ways.In recent years,China has successively introduced various preferential policies for attracting foreign investment and overseas talents,attracting a large number of foreign capital and outstanding overseas talents to enter domestic enterprises,on the one hand,foreign investment has provided a large amount of financial support,alleviating the pressure of Chinese enterprises' shortage of funds,overseas talents can enter the board of directors to provide advanced management experience,technological innovation,etc.On the other hand,the introduction of foreign capital also brings international risks.If foreign capital enters state-owned enterprises,conflicts between different cultural backgrounds and business ideas will also reduce the company's operating efficiency,which is not conducive to the deepening reform of Chinese state-owned enterprises.The dual impact of the company's overseas background on listed companies has become a question that must be answered in the process of Chinese capital market's opening up,therefore,it is a necessary research topic to fully understand the impact of overseas background on the company's innovation ability.This paper explores the impact of the overseas background of Chinese listed companies on their innovation capabilities from the perspective of shareholders and the board of directors,using the annual data of all A-share listed companies in the Shanghai and Shenzhen Stock Exchanges from 2013 to 2017,conducting an empirical study using regression analysis.The empirical research results of this paper show that: The higher the proportion of directors with overseas background,the more prominent the innovation ability of enterprises,and the foreign ownership can not have a significant impact on the innovation ability of enterprises,the impact of overseas background on performance is just the opposite;The overseas background's innovation promotion role in non-state-owned enterprises is stronger than that of state-owned enterprises,that is,state-owned capital has certain restraint on the innovation promotion of overseas background.The research in this paper has certain theoretical and practical significance.In order to improve the innovation ability of enterprises,enterprises can introduce more talents with overseas background,when individuals with overseas backgrounds join the company's board of directors,they can promote the transfer of knowledge and provide contacts abroad,bring foreign sophisticated technology and advanced management methods into the enterprise,directly affecting the company's business model,promoting the concept of innovation-driven development and paying more attention to the R&D investment of enterprises to improve the innovation output of enterprises.At the same time,foreign shareholdings can directly increase the source of funds for enterprises,ease the pressure on domestic enterprises,and corporate performance will increase accordingly.This paper can also help us better understand the significance of the reform of the science and technology system,and it is also of great significance for understanding the need to further deepen corporate governance and state-owned enterprise reform.The innovation of this paper can be summarized as the following three points:(1)Exploring the influence of overseas background of Chinese enterprises on their innovation ability from the perspective of shareholders and the board of directors,most of the previous literatures only study the impact of overseas background on corporate innovation from the perspective of shareholders,there are relatively few studies on the innovation output of the board of directors' the overseas background.(2)Exploring the impact of overseas background on the innovation ability of enterprises between state-owned enterprises and non-state-owned enterprises,the difference of controlling shareholders may have different impacts on the innovation ability of enterprises,among them,state-owned holdings are more common in the ownership structure of listed companies in China,the goal of state-owned enterprise managers may be subject to the administrative intervention of the government as their special agent,so that the manager's goal is not to pursue profit maximization,but to pay more attention to maintaining social stability and providing social services,based on the previous literature,this paper further explores the influence of the property rights of the ultimate controller on the relationship between overseas background and corporate innovation;(3)This paper uses the annual number of invention patents to represent the company's innovation output,which is more intuitive than the R&D investment to demonstrate a company's innovation ability.According to the above research ideas,this paper mainly studies from the following parts:Chapter One: Introduction.This part first expounds the research background of this paper,then analyzes the purpose and significance of the research,research ideas and methods,and finally the innovation of this paperChapter two: The definition of relevant concepts and theoretical basis.This part defines the concept of the main object involved in this paper,and analyzes the relevant theoretical basis.Chapter three: Literature review.The paper first reviews the relevant research on the measurement standards of enterprise innovation ability,then it summarizes the domestic and foreign research on the influence of foreign investment or shareholding on the innovation ability of enterprises and the domestic and foreign research on the influence of the overseas background of the board of directors on the innovation ability of enterprises,finally,a comprehensive review of the literature is carried out.Chapter four: Research Design.Based on the aforementioned detailed analysis and reasoning,this chapter presents the research hypothesis:(1)The higher the proportion of directors with overseas background,the more prominent the innovation capability of the enterprise,and the foreign shareholding does not have a significant impact on the innovation capability of the enterprise;(2)The overseas background's innovation promotion role of non-state-owned enterprises is stronger than that of state-owned enterprises,that is,state-owned capital has certain restraint on the innovation promotion role of overseas background,then introducing the explanatory variables,the explained variables and the control variables,designing the model and explaining the data source and the elimination principle.Chapter five: Empirical research and analysis of results.This chapter conducts descriptive statistical analysis,correlation analysis and regression analysis,and further tests the robustness of the empirical results.Chapter six: Conclusions and Prospects.