Research On The Informal Hierarchy Of Board Of Directors Impact On Technological Innovation Performance

From the beginning of the last century to now,innovation has received attention from all walks of life.In recent years,with the emergence of mass innovation of entrepreneurship and innovation-driven strategy of development,technological innovation will shoulder a significant part in the national economy.Enterprises are the principle body of technological innovation,if technological innovation can be successful,it will enhance the core competitiveness of enterprises.At present,although China is a large manufacturing business's country,there exist many enterprises with large proportion of innovation investment and powerful innovation ability,overall,there exists prominently the lack of independent innovation ability,insufficient R&D investment and other issues.Therefore,it is essential to strengthen the innovation and scientific research ability of manufacturing industry in China.As the vital body of innovation,enterprises are supposed to heighten their innovation and scientific research ability through various strategies,The board of directors,as the highest decision-making institution of the company,will automatically exert an effect on the innovation of the company.Based on the theory of principal-agent,theory of social capital and resource dependence,this research defines an informal relationship formed by directors on the basis of their different social status,resources and abilities as an informal hierarchy of the board of directors.The hierarchical relationship can alleviate the contradictions and conflicts caused by decision-making among directors at the same level,and then enhance the efficiency of inmovation decision-making to advance the company's technological innovation performance.Therefore,based on the balanced panel data of 596 A-share listed manufacturing companies in Shenzhen and Shanghai Stock Exchanges from 2015 to 2017.By using Stata 12.0 statistical software of analysis and multiple linear regression analysis's method,the research discuss the impact of the informal level of the board of directors on the performance of technological innovation of listed manufacturing companies in China.What's more including the moderating function of ownership concentration and the background of the highest level directors with university teachers.Empirical evidence mirrors that the informal level will form a evidently positive impact on innovation performance.The study also validates that ownership concentration and the background of the top directors of the board of directors with university teachers play a moderating role in the impact of the informal level of the board of directors on the innovation performance of listed manufacturing companies.In addition,in order to verify whether the conclusion can be applicable in various industries of manufacturing,this research also makes a grouping regression for 596 listed manufacturing companies and expect to enrich the theory of board governance.