The Research On The Mechanism And Effect Of How The Turnover And Term Of Senior Executives Influence Innovation Ability

The innovation ability of enterprises is the core of the sustainable stability of enterprises based on the society,and one of the driving forces to promote social and economic development.As the strategic maker and executor of an enterprise,senior executives have a crucial impact on the innovation activities of the enterprise.The change of senior executives will make them short-sighted and pay more attention to the short-term goals of the enterprise.In addition,this personnel change will also affect the implementation degree of the established innovation strategies of the enterprise.Executive tenure,as one of the important personal statistical characteristics of senior executives,is of great importance to the current development and long-term future of enterprises.Along with our country capital market system is increasingly perfect,the listed company increases year by year,gradually standardize information disclosure system,enterprise’s innovation ability can carry on the quantitative model.More scholars look inside the companies,to research into the factors influencing the senior management of corporate R&D input is increasing,the company executives and term change impact on enterprise innovation ability has the very strong practical significance and theoretical significance.This paper takes 1181 listed companies in Chinese A-shares from 2014 to 2018 as samples,uses multiple linear regression model to analyze the influence of executive change and tenure on innovation ability of enterprises.Based on the principal-agent theory,it studies the influence of executive change and tenure on innovation ability of companies through acting on agency cost.Finally,it separates knowledge-intensive industry variables for comparative analysis,and draws the conclusion that: the influence of executive change on R&D investment of all sample companies is not significant;The innovation ability of listed companies increases with the increase of their tenure.The longer the tenure of senior executives,the more research and development investment enterprises make.After the change of senior management,the agency cost and R&D investment are reduced.The longer the tenure of senior management,the higher the agency cost and the research and development investment.The change of top management in knowledge-intensive enterprises has a significant negative impact on R&D investment,while the unchanged top management in knowledge-intensive enterprises has a significant positive impact on R&D investment.The impact of the term of office of senior executives in knowledge-intensive industries on the innovation capability of enterprises is inverted U-shaped,and its impact first increases and then decreases with the term of office of senior executives.After the dependent variable is changed to R&D input/total assets,the significance of the main independent variable to the dependent variable is basically consistent,thus ensuring the stability of the model as a whole.Based on the analysis of the empirical results,it is found that the change of executives in knowledge-intensive enterprises has a significant impact on the R&D investment of enterprises.The five-year tenure of senior executives in all industries has a significant positive correlation with the innovation ability of enterprises.The longer the term,the greater the R&D investment,which also indicates that the stability of senior executives is crucial to the innovation ability of enterprises.The tenure of executives in knowledge-intensive enterprises is in an inverted U shape with their R&D investment.Enterprises with high debt ratio will reduce their R&D investment.In order to increase profits,enterprises will reduce their R&D investment,thus weakening their innovation ability.