Research On The Relationship Between Institutional Investors' Shareholding,government Subsidies And Corporate Innovation

The era of knowledge economy,technology advancement has intensified competition in world markets.Innovation has become a main part to promoting economy transition and enhancing international competitiveness.As the main bearer of national science and technology innovation activities,SMEs are practitioners who closely integrate economic development with scientific and technological progress.Therefore,SMEs' innovation is not only very beneficial to its own development,but also plays an irreplaceable role in promoting the improvement of the innovation strength.Due to the high investment and high risk of innovation activities,there are market failures in the promotion of enterprise R&D projects.The government will provide financial support for the innovation activities of enterprises through innovative subsidy policies.At the same time,institutional investors,as the main force of the capital market,can influence the company's production and operation decisions through corporate governance through its own advantages.Under the background of vigorously promoting the competitiveness of enterprises and building an innovative country,this thesis studies the institutional shareholding,government innovation subsidies and enterprise innovation from the perspective of government innovation subsidies,and enhances the utilization efficiency of government innovation subsidies for enterprises.First of all,the thesis summarizes relevant research results at home and abroad.Based on technology innovation theory,principal-agent theory,institutional shareholder activism theory and common governance theory,I write some mechanism analysis paths between institutional shareholding,government innovation subsidy and enterprise innovation.Then,I raise four research hypotheses and find the data of2012-2016 of SMEs as samples to construct the OLS model.The empirical research is carried by using Stata.According to the empirical results,the thesis draws the following conclusions:1.With the development of enterprises,government innovation subsidies and institutional holdings have positive relationship with corporate innovation.2.From the perspective of the efficiency of the government's use of government innovation subsidies,both the shareholding of the institution and the shareholding of the pressure-resistance institution have positive impact on the relationship between government innovation subsidies and corporate innovation,while pressure-sensitive Institutional holdings have negative impact on the relationship between them.Based on the analysis of the empirical results,I provides policy recommendations from the perspective of government departments,SMEs,and institutional investors.On the one hand,enhance the efficiency of SMEs' use of government innovation subsidies,and achieve effective allocation of resources;on the other hand,improve the importance of SMEs on the coordination relationship between corporate governance and capital markets,and actively promote funds between enterprise innovation and market investment and financing.The continuous circulation of liquidity will better enhance the innovation level of China's SMEs.