The Research Of The Impact Of Managers' Military Experience On Firm Innovation Investment

Innovation is an important factor in promoting scientific and technological progress.With the advent of the fourth-generation industrial revolution,the world has entered an era dominated by data and innovation competition.In recent years,with the optimization of China's economic structure and the implementation of innovation-driven development strategy,China's innovation scale continues to expand,the innovation subject status of enterprises is increasingly prominent,and the overall innovation ability is also enhanced significantly.However,the difference between innovation input of enterprises is also obvious increasingly.The reason for this is that existing researches are mainly elaborated from the aspects of enterprise characteristics,industry and market.However,with the introduction of advanced theory and the development of psychological research,the idea that the characteristics of managers,especially the early experience,can affect enterprise decision-making has been recognized by the academic circle.A large number of retired soldiers have entered enterprises or started their own businesses since the founding of new China,such as Wang Jianlin,Ren Zhengfei,Wang Shi and so on.Today,military managers have become an indispensable force in China's business community.However,existing researches focus more on the relationship between managers' military experience and corporate M&A,financial policies and financing decisions,and less on the impact of managers' military experience on enterprises' innovation input.Therefore,the research focus of this paper is to explore the influence and mechanism of managers' military experience on enterprises' innovation investment.Based on listed companies from 2008 to 2016 in China,we study the correlation managers' military experience with firm innovation investment,as well as the influence of managers' military time and military type on enterprises' innovation input firstly.Secondly,this paper studies the mediating effect of managers' risk taking,manages' social responsibility and government subsidy between military experience and their investment in enterprise innovation.Then,we discusses the moderating effect of the nature of enterprise property rights,founder managers and the degree of industry competition on the experience of managers in the military and the investment in enterprise innovation.Finally,according to the conclusion of this paper,some suggestions are put forward.We find that firms with military management experience have higher investment in innovation,the longer the manager has been in the army,the more the enterprise will invest in innovation.Secondly,managers' risk-taking and government subsidy are effective ways for managers' military experience to influence enterprises' innovation investment.Thirdly,the effect of managers' military experience on company's innovation is more significant when firms have founder military managers,when firms are non-state-owned,and when firms face high degree of market competition.The main contributions of this paper are as follows: firstly,we study the relationship between managers' military experience and enterprises' innovation investment,and the characteristics of managers' military experience are subdivided,which enriches the related researches in the field of managers' heterogeneity.Secondly,the paper further analyzes the mediating effect of managers' risk taking,manages' social responsibility and government subsidy between managers' military experience and enterprises' innovation input,and opens the "black box" of the influence of managers' military experience on enterprises' innovation input.Thirdly,it analyzes the moderating effect of the property right nature of enterprises,the nature of founders and the degree of industry competition on the influence of managers' military experience on enterprises' innovation investment.