Managerial Ability And Substantial Innovation

In recent years,with the in-depth implementation of the strategy of innovation-driven development,China has achieved many innovation results.Among them,as a key indicator of innovation output,the number of patents has increased significantly in recent decades,however,the substantial innovation achievements mainly based on invention patents have not significantly improved.There is a serious problem of " high quantity and low quality" in China's innovation.Only high-quality substantial innovation can bring technological progress and promote long-term and healthy economic development.Therefore,how to effectively promote enterprises as the main body of innovation to carry out more substantial innovation has important research value.Management team is the decision-making body of an enterprise,whose ability has an important influence on the development of enterprise.Can managerial ability promote enterprises' substantial innovation? In addition,the performance of managerial ability will be affected by internal and external factors.As an important internal and external governance mechanism,compensation incentive and analyst coverage will play a moderating role between managerial ability and enterprises' substantial innovation? Under different property rights and different industries,is there any difference in the above relationships?Based on this,this paper takes 2009~2016 China A-share listed companies as the research sample,empirically tests the impact of managerial ability on enterprises' substantial innovation from internal perspective of enterprises,and combines the internal and external governance mechanism to discuss the moderating effect of compensation incentive and analyst coverage on the relationship between the two parties.At the same time,distinguish property rights and industries,further test the differences between the above relationships.The results show that managerial ability can significantly promote enterprises' substantial innovation,compensation incentive can strengthen the promotion of managerial ability on enterprises' substantial innovation,and analyst coverage will weaken the promotion of managerial ability on enterprises' substantial innovation.Further research finds that the promotion of managerial ability to enterprises' substantial innovation is more significant in private enterprises and high-tech enterprises,the positive moderating effect of compensation incentive is more significant in private enterprises and high-tech enterprises,and the negative moderating effect of analyst coverage is more significant in private enterprises and non high-tech enterprises.The above conclusions are of practical significance to promote enterprises' substantial innovation from the selection and training of management team and the setting of incentive mechanism.