Empirical Study On The Relationship Between Governance Environment And Technological Innovation Capability Of Listed Company

The21st century is the era of knowledge economy, listed companies to achievecompetitive advantages in the increasingly fierce market competition must have the corecompetitiveness of which the source is the technological innovation capability. Thetechnological innovation capability is influenced by corporate governance environment,once the corporate governance environment can not meet the needs of every link oftechnological innovation, it is bound to hinder the technological innovation and influencethe long-term development of the company.On one hand,the environment of corporategovernance provides the basis and conditions for technological innovation,on the otherhand,it has also become a constraining factor in promoting technical innovation ability ofcompany.Therefore, it has an important practical significance to study the relationshipbetween corporate governance environment and technological innovation capability.In this paper, the governance environment is made of external and internalenvironment.We take the effect of governance environment for technological innovationcapability as our research subject, doing an empirical research related to governanceenvironment and technological innovation ability based on the data of Chinese listedcompanies in information technology industry in2010.From the results we can find that thefinancial services, the human resource supply and the level of economic development ofexternal environment are significant positively related to technological innovationcapability,while the intermediary organizations and technical services and the infrastructureconditions are significant negatively.The ownership concentration,shareholding ratio of theboard,shareholding ratio of supervisors and the size of the supervisory board of internalenvironment are significant positively related to technological innovation capability,whilethe nature of largest shareholder,shareholding ratio of the managers and two duty syncreticare significant negatively.According to the research conclusion in this paper, optimizingcorporate governance environment needs both external and internal cultivation.Createsuitable external governance environment as well as perfect internal governanceenvironment.Only by making the external and internal governance environmentcomplementary, can we promote the technological innovation capability of enterprise.