Research On The Impact Of Management Power On Enterprise Value

The 19 th National Congress pointed out: "Innovation is the first driving force for development and the strategic support for building a modern economic system." It can be seen that the status of innovation in economic and social development is self-evident.But the process of innovation is difficult,and both individuals and enterprises have to face a variety of risk chalenges.As the main body of market participation,enterprises are also facing risks from inside and outside of enterprises.As the decision maker and executor of enterprise strategy,the risk that the enterprise undertakes is directly related to it.Power is the basis of manager's decision-making.When they have more power,managers have more ability to make decisions according to their own wishes.At the same time,the research also shows that having power makes management more inclined to take risks and face risks directly.On the one hand,research has proved that risk-taking can improve the performance of enterprises;on the other hand,it can promote the continuous development of social economy.Therefore,it is necessary for both micro-enterprises and macro-economy to take risks.Reading the literature,we find that the existing research pays more attention to the direct impact of the size of management power on enterprise value,so that different scholars based on different theories draw opposite conclusions.Therefore,this paper tries to build a bridge between management power and enterprise value.By sorting out the literature,it is found that enterprise risk-taking can be an intermediary variable to link the two side.Because the power of management first affects the enterprise's risk decision-making,and then it will affect the creation of enterprise value because of the different level of risk-taking.Therefore,this paper studies the following questions:(1)What is the relationship among management power,risktaking and enterprise value?(2)Does enterprise risk-taking play an intermediary role?The innovation of this paper is as follows: the existing literature has more research on the direct influence of management power on corporate value,resulting in differences in research conclusions.Therefore,based on the existing literature,this paper uses management power theory and behavioral decision theory to analyze the impact of management power on corporate value from the perspective of risk-taking.Through empirical research to clarify the relationship between the variables.And through the study of the intermediate propagation path,it provides a basis for more persuasive conclusions.In this paper,the A-share listed companies in Shanghai and Shenzhen in 2013-2017 were taken as research objects.After the initial screening,a total of 2623 non-balanced panel data composed of 11981 sample observations were obtained.Based on the research hypothesis and research model of this paper,using Stata14.0 software for multiple regression analysis,the empirical results are as follows:(1)Management power significantly positively affects the value of the enterprise;(2)Management power and corporate risk-taking are positively related;(3)According to Baron & Kenny's(1986)hierarchical regression analysis,it is confirmed that corporate risk-taking plays a mediating role between management power and corporate value,and it is a partial intermediary.Finally,the reliability of the above conclusions was confirmed by the robustness test.Based on the results of empirical analysis,in order to enable enterprises to correctly understand management power,empower management and take appropriate corporate risk levels,and achieve better corporate value,the following recommendations are made:(1)Dialectical view of power,rationality thinking about power;(2)Appropriately restricting power and rationally alocating power;(3)Correctly understanding risks and attaching importance to risk management.Of course,there are some limitations in this study:(1)From the actual situation of Chinese enterprises,the measurement methods of various research variables need to be considered;(2)There are many enterprises in China,but the sample studied in this paper is listed in China,and it does not involve unlisted.The conclusion of the research needs to be confirmed.(3)This paper needs to further expand the scope of background research for managers.