An Empirical Study Of The Relationship Between Enterprise Equity Structure And Innovation Investment

With the rapid development of China's economy,innovation has become an important part of the development of the country and enterprise.At present,the investment in innovation of Chinese enterprises has grown rapidly,but there are still great differences with developed countries.Among the factors affecting the innovation investment of enterprises,a very important factor is the equity structure.Starting from the equity structure,we study the impact of concentration of equity and shareholding ratio of executives on innovation investment.Environmental uncertainty can Influence the innovation investment and decision-making of enterprises.We add environmental uncertainty as a regulatory variable to study the relationship between environmental uncertainty,equity structure,and corporate innovation investment.First,on the basis of summarizing the previous studies,this paper attempts to use the equity concentration and the shareholding ratio of executives as explanatory variables to explore the influencing factors of enterprise innovation investment,and add environmental uncertainty as regulatory variable to further explore the relationship between equity structure and corporate investment under the uncertain environment.Second,based on the analysis of principal-agent theory,optimal contract theory and residual demand theory,we build a research framework and make assumptions.Third,we select the panel data of A-share listed companies in Shenzhen and Shanghai in 2015-2017 and eliminate financial enterprises for empirical research and analysis.In conclusion: the higher the concentration of equity,the less invest in innovation.Enterprises with high shareholding ratio of executives tend to invest more in innovation.The reason is that China's shareholding structure is relatively concentrated,and the equity structure is too concentrated.When the shareholding ratio of the largest shareholder is too large,that is,when the concentration of equity is too high,a greater risk and the liquidity of the equity will be considered by the major shareholder in the future,and the risk aversion will be stronger,thereby reducing the incentive to invest in innovation.If the shareholding ratio of the major shareholder reaches a higher proportion,the shareholder will intervene in the management's business decision,thereby reducing the investment in the company's technological innovation.The shareholdings of executives can encourage executives to achieve the same interests as the company and promote innovation investment.Environmental uncertainty has a positive adjustment effect on the concentration of equity and innovation investment,but has a negative adjustment effect on the shareholding ratio of executives and the innovation investment of enterprises.Environmental uncertainty has weakened the phenomenon of “one big share” caused by excessive concentration of equity.When the environment is uncertain,the power of large shareholders is dispersed,and the harm for the interests of small and medium shareholders is dispersed.Executives will be aware of the increase in the costs of innovation investment and the increase in innovation risks to reduce innovation investment;Finally,the paper makes recommendations based on the research results and the status of enterprise innovation investment.Summarize the shortcomings and propose a vision.