Ownership Concentration Of Major Investor And Innovation

As the main driving force of economic development,innovation has increasingly valued by policy makers and business owners.In recent years,the state has issued many policies to encourage innovate.The investment of enterprises in innovation is also continuing to grow,hoping to outperform other companies in the fierce market competition and realize the long-term development of the company.In the academic field,enterprise innovation has become a major topic in the field of institutional research and enterprise research,and many scholars have done in-depth and meticulous research on it.In the study of the influencing factors of enterprise innovation,scholars found that enterprises' internal and external institutional environment will have an impact on innovation investment and innovation performance.As the basis of corporate governance structure,the ownership structure is considered as one of the important factors that affect the innovation of enterprises.Reasonable ownership structure can promote the innovation of enterprises,while unreasonable one can hinder it.The focus of this paper is still the impact of equity concentration on on the increase in market value brought about by the company's R&D investment and the innovation activities carried out by the company.The difference is that,the research object of this paper is transferred to the private enterprises in China.Based on China's financial environment,this paper examines the impact of the equity concentration of the main investors in private enterprises on the R&D investment and innovation performance of enterprises,and further analyzes how private enterprises can alleviate the restrictions of capital market on their R&D investment from the perspective of social capital.In theory,this paper analyzes the different impact mechanisms of the main investors' equity concentration on the R&D investment and innovation performance of enterprises,basing the previous research conclusions and considering the fact that China's capital market sets higher access to private enterprises,Then,from the perspective of corporate social capital,we analyse moderators," whether the registered capital of the enterprise comes from private lending or not" how to ease the financing restrictions of the capital market and to promote the positive effect of the equity concentration of the main investors on the research and development investment.Finally,three hypotheses are proposed.In the empirical research,this article uses the data obtained by the 2012 National Federation of Industry and Commerce to investigate Chinese private companies as a sample to verify the impact of the equity concentration of major investors in private companies on their R&D investment and innovation performance.It explores how informal financing can alleviate the inhibitory effect of the capital market's financing restrictions on the “positive effect of the main investor's equity concentration on corporate R&D investment”.There are three main conclusions in this paper:(1)Because private companies' R&D investment is greatly affected by the availability of capital,and China's capital market has put forward higher access requirements for private companies,increasing the financing costs of private companies,Making private companies face greater financing constraints.To a certain extent,it restricts the role of the main investor's equity concentration in promoting the company's R&D investment.Therefore,the equity concentration of the main investors in Chinese private enterprises has no significant effect on the R&D investment of the enterprises.(2)Unlike the R&D investment of the enterprise,the innovation performance of the enterprise is more related to the efficiency of the enterprise's use of resources,which is greatly affected by the internal governance mechanism of the enterprise,and is within the controllable range of the main investor of the enterprise.Therefore,the increase in the concentration of equity of the main investors of the enterprise will bring obvious improvement in the innovation performance of the enterprise.(3)In the case where the private company's registered capital comes from private lending,the effect of increasing the R&D investment of the main investor's equity concentration will be significantly improved and become significant.