Background Of Independent Directors,Quality Of Internal Control And Dual Innovation Of Enterprises

Since the introduction of the independent director system into enterprises,the role it has played in enterprises has been hotly debated by scholars.Independent directors are called "foreign directors",and they need to maintain their independence and play their roles in the enterprise.The particularity of the position of independent director makes the academic circles have different opinions on it.On the one hand,there is a phenomenon of "resignation tide" of independent directors,and negative news is common.They think that independent directors are "vase directors" and "rubber stamps" in enterprises,and they have no right to speak in enterprise decision-making,so they follow suit.On the other hand,scholars believe that independent directors play an important role in enterprises,affecting the operating efficiency and innovation level of enterprises.As an important subject in the micro economic level,innovation is the power source to promote sustainable economic development and strategic deployment,and it is the only way for enterprises to steadily and steadily enhance their core competitiveness.Therefore,it is of great practical significance to study the influence of independent directors on the innovation and development of enterprises.Based on the branding theory and dual innovation theory,this thesis divides the background of independent directors into academic background and financial background.Taking the high-tech listed companies in Shanghai and Shenzhen A-shares from 2015 to2021 as research samples,this thesis studies the correlation between the background of independent directors and dual innovation of enterprises.Through theoretical analysis and regression model,this thesis verifies the hypothesis,combs and further tests the mechanism of the influence of internal control quality on the background of independent directors on dual innovation of enterprises.In addition,from the perspective of heterogeneity,this thesis analyzes the differential influence of independent directors’ background on dual innovation of enterprises under different property rights and geographical proximity.The findings are as follows:(1)The academic background of independent directors promotes the exploratory innovation and development innovation of enterprises.(2)The financial background of independent directors inhibits the exploratory innovation and development innovation of enterprises.(3)The influence of the background of independent directors on the dual innovation of enterprises is still robust when the background of independent directors is delayed by one period and two periods respectively.(4)The quality of internal control plays an intermediary role in the relationship between the background of independent directors and dual innovation.(5)Under different property rights,the effect of independent director background on dual innovation of enterprises is different.Compared with state-owned enterprises,the academic background of independent directors in non-state-owned enterprises is more significant for dual innovation of enterprises;The financial background of independent directors inhibits the dual innovation of enterprises under different enterprise properties.(6)Considering the geographical differences of independent directors,compared with those in other places,the academic background of independent directors who are not in different places has a stronger role in promoting dual innovation of enterprises;However,the financial background of independent directors has a weak inhibitory effect on the dual innovation of enterprises in the case of non-remote.According to the above conclusions,the following suggestions are put forward:(1)Pay attention to the different backgrounds of independent directors,and pay attention to the adaptability of independent directors’ branding and corporate governance;(2)Further strengthen the construction,management and standardized operation of the internal control system of enterprises;(3)Dialectically and comprehensively treat the exploratory innovation and development innovation of enterprises,and promote the development of dual innovation and high quality;(4)Improve the incentive mechanism and sense of responsibility of independent directors.