Research On The Impact Of Management Entrenchment On Innovation Investment Of Chinese A-share Listed Companies

With the deepening of international exchange and trade,Chinese enterprises are facing the opportunities and threats from the global market.If Chinese enterprises want to leap into the front ranks of the world,it is necessary to improve competitiveness,and the key to improve competitiveness is investment in innovation.The increasingly prominent status of innovation investment has gradually attracted the attention of the academic circle,and a large number of studies on the impact factors of innovation investment have emerged in macrocosm and microcosm.However,the research on the impact of management entrenchment on innovation investment is still requires for further study.Based on the Hypothesis of Economic Man,the Theory of Information Asymmetry and the Theory of Management Entrenchment,this paper uses the A-share listed companies' non-equilibrium panel data from 2013 to 2017 to study the impact of managerial entrenchment on the innovation investment,and the empirical result shows that there is a significant negative correlation between managerial defensiveness and innovative investment in China's A-share listed companies,which indicates that managerial entrenchment is one of the most important factors affecting the innovative investment capability of enterprises;then this paper considers the moderating effect of analyst coverage on the relationship between managerial entrenchment and innovation investment,the result indicates that analysts coverage have a significant moderating effect on the relationship between management entrenchment and innovation investment,which means analysts coverage are contribute to dampen the negative impact of managerial entrenchment on innovation investment;Finally,this paper divides the sample data into high-tech enterprises and non-high-tech enterprises,and studies the impact of Management entrenchment on innovation investment in different types of enterprises,the result clarifies that compared to high tech firms,the negative effect of managerial entrenchment on innovation investment is more significant in non-high-tech enterprises,which indicates that the degree of management defense is different in different types of enterprises.Based on the above analysis,in the aim of reducing the management entrenchment level and improving the ability of innovation investment,this paper provide the corresponding recommendations and future research direction from the perspective of improving the executive incentive scheme and the internal and external supervision mechanism.