Relationship Study On Corporate Governance Mechanism,Technology Innovation And Firm Performance

With the change of the way of economic development,the rise of greenlow carbon economy,and the rapid development of the transnationaleconomic, technology innovation has increasingly become a drivingforce of corporate earnings growth. It is urgent for IT and pharmaceuticalindustry to enhance R&D investment, master core technology and upgradeinnovative ability of such strategic emerging industries. How to rely ontechnology innovation to develop technology-intensive industries,toimprove corporate governance and enhance corporate performance,is thesubject of this study.Enterprise is the main role of innovation, and corporate governancedetermines the necessary supply of innovative resources.Executiveincentive,the settings of the board of directors and supervisors, andrestrictions on the capital and debt markets as corporate governanceelements will affect innovation input, innovation mode and innovationperformance of the enterprise. Therefore, the paper tries to analyze howto promote technical innovation and improve the enterprise performancein the perspective of corporate governance. Because corporate governanceis the internal decision mechanism for business to operate.EnterpriseR&D investment highly relies on strategic orientation of futuredevelopment and organizational control of resources allocation.The main innovations of the assay are to construct “corporategovernance mechanism, technical innovation and performance”model,and tofind out the relationship among three aspects subjected by China IT andpharmaceutical listed companies. First,to construct a conceptual frame-work of “corporate governance mechanism,technical innovation and firmperformance”based on the analysis of corporate governance theory,corporate governance mechanism and technology innovation theory.Thefactors of corporate governance mechanism are defined from decision-making and monitoring mechanisms, incentive mechanism and restraintmechanism.Secondly,to analyze the relationship among corporategovernance mechanism, technical innovation and firm performance viaquantative methods. The results of research find out that differentaspects play different impacts on R&D investment.Also,R&D investment onenterprise performance is not a simple linear relationship.Thirdly,toexplosively analyze the structure relation among corporate governance mechanism, technical innovation and performance thorough integratedmodel design.The study finds that decision-making and monitoringmechanisms, incentives mechanism will promote technical innovation, butrestraint mechanism has a negative effect on independent innovation ofenterprises.Finally,the essay further discusses the meanings for realmanagement practice based on analysis and explanation of the results.Somesuggestions on optimized goveranance mechanism good for R&D investmentare provided, to further promote the enterprise competitiveness andlong-term development.