The Influence Of Corporate Transparency On Firm Innovation

It is an inevitable choice for companies to implement technology innovation in order to face with development environment change,to solve deep-seated problems encountered during the development,to have the mode of production transformed,to promote their core competitiveness in the market,as well as maintain a sustainable and healthy growth.As global competition in science and technology is becoming fiercer and fiercer,it is of great significance to do some researches about influential factors on enterprise innovation.Some existing literatures research the influential factors on company innovation from perspectives of government subsidies and tax incentives,others from the aspects of characteristics of executive team and stock ownership incentives,while few from the perspective of corporate transparency.Improving corporate transparency is the key point to reduce the internal and external information asymmetry,make up for market participants' inferior information position,strengthen the supervision on the company and accomplish the efficient allocation of resources.In view of this,adopting the data from China's listed companies from 2009 to 2017 as the research sample,this essay build a relevant model and use the multiple linear regression to test the impact of transparency on the corporate innovation efficiency and corporate innovation investment on the basis of previous research and theory analysis.In this paper,the empirical results show that:(1)Corporate transparency has significant positive influence on innovation output and efficiency,which implies that more efficient innovation output will benefit from improvement on companies' transparency;(2)R&D expenditure's sensitivity about investment opportunities increased by corporate transparency,thus promoting capital flow towards good investment opportunities,and improved the allocation efficiency of research and development fund;(3)Corporate transparency can effectively promote the innovation input,providing financial support for R&D expenditure by alleviating the financing constraints on enterprises;(4)Improving transparency of non-state-owned enterprises has more effects on their efficient innovation compared with those state-owned ones;(5)Compared with areas of lower marketization process,the influence of transparency of companies in areas of higher level of marketization on innovation efficiency is more obvious.In this paper,we study the effect of corporate transparency on the innovation efficiency and input,as well as its influence mechanism,enriching the existing research about the economic consequences of company transparency,so as to provide a new train of thought to improve companies' R&D expenditure and innovation efficiency.Based on theoretical analysis and empirical results,this paper puts forward several suggestions: firstly,companies should disclosure quality information in time;secondly,the departments concerned shall encourage and foster development of intermediary organizations;lastly,supervision departments shall further improve the information disclosure assessment system,etc.