The Research On The Correlativity Of Innovation, Ownership Concentration And Decline Trajectory Of Enterprise:the Moderating Role Of Political Relations

In2009, the first batch of28companies listed on GEM(Growth Enterprise Market), means China’s GEM was born. With the rapid development of China’s capital market, the scales gradually expand and achieve good results. GEM market serves the majority of SMEs(small and medium-size enterprises) and high-tech enterprises, And also undertakes the progress and development of the whole society.With the continuous development of GEM, It is essential to study the development of the enterprises on GEM.Innovation is not only as a driving force to promote social and economic development but also plays an important role in the process of the development of enterprises, enterprises have to keep R&D and the use of new technologies in order to obtain other enterprises incomparable core competitiveness, improve enterprises performance. From the perspective of enterprises governance, ownership concentration and enterprises performance are closely related. Although many scholars have conducted on the correlation between the two studies, they ignore the political relations between the R&D intensity, ownership concentration and corporate performance acting as a boundary condition. At the same time, existing studies provide a longitudinal study on enterprise performance, but they don’t does not consider enterprise performance over time which is is nested within the enterprise. Therefore, in a multi-level longitudinal data structure, scholars need to take a statistical analysis technology which is included both a matter of time and cross-level problems into account in the study of the changes in the development of enterprise.To solve these problems, based on reviewing the relevant literature, the paper uses188GEM companies’ four-year panel dataof panel data, uses the cutting-edge HLM(Hierarchical Linear Modeling) and analyzes and analyze the specific impact mechanism of various influencing factors on the enterprise performance. We regard the time variable as the first layer, enterprise layer as the second layer, performance as the dependent variable. Putting the poitical relations as the moderator variable in the second layer is to explore the relationships among R&D intensity, concentration of ownership and enterprise performance in the first layer.while puting other independent variables in appropriate layers to explore how each layer variables influence on enterprise performance. We build the research model on the basis of previous study. We use Excel, SPSS19.0and HLM6.08statistical analysis software for statistical data analysis, including descriptive statistical analysis of the basic situation of the sample, variables descriptive statistical analysis, modeling and analyze of HLM, the role of variables in the process of enterprise development analysis.Finally, On the basis of the above empirical research, this research conclusions are as follows:1) GEM enterprises are U decline trajectory of first rise after falling;2) In the enterprise decline process, there is a negative correlation between R&D intensity and enterprise performance;3) In the enterprise decline process, there is a positive correlation between ownership concentration and enterprise performance;4) In the process of the decline of enterprises, the negative effect of R&D intensity on enterprise performance is weaker when enterprise political relationship is high rather than low;5) In the process of the decline of enterprises, the positive effect of ownership concentration on enterprise performance is weaker when enterprise political relationship is high rather than low;6) Comparing among the enterprises, the enterprises characterized by highfinancial slack get higher enterprise performance.