Research On Corporate Governance Structure And Financial Performance Of Technological Innovation

Technological innovation is a source of wealth, and the fundamental driving force of economic growth. From the long-term development of enterprises, innovation constitutes the ultimate source of competitive advantage. Lack of core technology resulting in low-level competition, lower corporate profits is the common phenomenon of the Chinese enterprises. Once the existing corporate governance structure may not be able to meet the needs of all aspects of technological innovation, technological innovation is bound to hinder enterprises’ technological innovation, thereby affecting the long-term development of the company. Factors that affect technological innovation is multifaceted, and corporate governance arrangements as a group system, have a fundamental impact on enterprises’ technological innovation. On The other hand, technological innovation has far-reaching impact on the financial performance of the enterprise as a whole. China constantly stressed to increase technological innovation, but only a good technical innovations will have a positive impact on the enterprise’s overall financial performance, technology innovation financial performance, there must be more in-depth understanding. Therefore, the research topics are defined as the relationship between corporate governance structure and financial performance of technological innovation.1. The purposes of this studyFirst, explore the existence of correlation between corporate governance structure and technological innovation, as well as how to influence the enterprises’ technological innovation.Second, build a performance evaluation system for technical innovation, to better evaluate the effect of innovation activities, and its impact on the overall financial performance, the evaluation of the technological innovation studies as a further analysis of the empirical part of the basis.Third, based on empirical study, analyze the impact of corporate governance structure to the result of technological innovation.2. The main contentsChapter Ⅰ:Introduction. This chapter begins the status of technological innovation and corporate governance issues as research background, and stressed the need to study and practical significance. Second, it proposed purpose of this study and research ideas. Finally, we summed the expected contribution of this article.Chapter Ⅱ:Literature Review. The theme of this chapter for research, review of corporate governance and technological innovation in the field of literature, in accordance with the topics of literature, literature grouped into three parts:the relationship of the governance structure and technological innovation, technological innovation and financial performance relationship, Performance Evaluation of technological innovation.Chapter Ⅲ:Theoretical Analysis. This chapter first summarizes the relevant theory of corporate governance and technological innovation. And then based on the agent theory, innovation theory, sustainable development of financial theory, it analyzes the relationship between corporate governance structure and technological innovation, and obtained the following points:First, technological innovation activities means a high degree of uncertainty, and performance on its financial performance is often volatile. Corporate governance structure will be a profound impact on enterprise technology innovation; Second, The governance structure of a profound impact on resource supply of technological innovation, performance evaluation method of the impetus for innovation and innovation; Third, companies that have good governance mechanism and promote technological innovation strategy, both short-and long-term interests, achieve sustainable development.Chapter Ⅳ:The Financial Evaluation of the Technological Innovation. This chapter first summarizes the status of China’s technological innovation, indicating that there is room for further growth in China’s large and medium-sized industrial enterprises in technical innovation and capital investment. Then build a performance evaluation system for technical innovation. Evaluation system based on BSC is builded as financial perspective, customer perspective, internal process perspective and learning and growth perspective. Enterprise should pay attention to the core indicators of the financial performance of the innovation activities as a measure of the basis of innovation and the final results. The same time, outside the enterprise to these indicators based on more intuitive to consider the corporate financial performance of technological innovation.Chapter Ⅴ:Empirical Analysis. This chapter is based on the study of the previous two chapters, doing empirical research on the governance structure and financial performance of technological innovation. It selects China manufacturing enterprises’2010cross-sectional data as the sample, and divides governance structure into three part, such as ownership concentration, proportion of independent directors and management incentives, giving as the independent variables of the study. Then from descriptive statistics, regression analysis, it gets the following conclusions:First, to improve the ownership concentration can promote technological innovation and financial performance; Second, the proportion of independent directors and technical innovation are correlated; Third, managers stake and technological innovation ability to grow positively are correlatedChapter Ⅵ:Conclusions and Countermeasures. This chapter first summarizes the full text, from the overall problem, theoretical analysis, empirical analysis, respectively, the profiles out of the conclusions of the study. Then, based on the fifth part of the empirical analysis of the results of proposed countermeasures and promoting technical innovation to improve corporate governance:including improving the ownership structure, improve the structure of the Board, and improve the incentive and restraint mechanisms.3. The main contributionsFirst, theoretical analysis of relations of corporate governance structure and technological innovation provide a richer perspective of a more comprehensive theoretical support.Second, innovation performance system based on BSC can be used as a reference method for internal evaluation and management of technological innovation, in order to control the process of technological innovation; and technological innovation evaluation system based on the traditional financial indicators is the ultimate basis of the managers and shareholders, as well as providing outsiders to measure technological innovation. Third, Innovative empirical analysis of corporate governance structure and technological innovation financial performance, providing a more accurate measure affect of the degree and mode of governance structure for technological innovation.