The Influence Mechanism Of Corporate Governance And Technological Innovation

With the rapid development of information technology in large data era and the increasing speed of product upgrading, enterprises are facing a more volatile, more open and nonlinear external environment, enterprises’survival and development in such an external environment become more and more dependent on the continued competitiveness of technological innovation. Enterprise’s technological innovation has become the core theme of the modern economy. From a micro level, technological innovation is an necessary for the enterprise to obtain the core competitive power; From a macro level, technological innovation is an engine of economic growth. Therefore how to effectively improve the technology innovation ability of enterprises has become a focus of the theoretical and practical circles.For the listing companies, how to transform the market resources into technological innovation ability has been an important issue for many scholars and entrepreneurs. The corporate governance theory provides an important way to solve this problem, this theory argue that as the core element of modern enterprise system, corporate governance can stimulate the creative potential of the enterprise and ultimately will have positive effect on technological innovation through the integration and mobilization of enterprise resources and the incentive mechanism.From a perspective of corporate governance integration theory and system theory, This research systematically studied the influence mechanism of corporate governance on enterprise technological innovation.In the method of theoretical analysis and deduction, this research constructs a theoretical model of mechanism of the effect of corporate governance on technology innovation. We use 499 listed company panel data of China to do an empirical test on the relationship between corporate governance and technological innovation. Our study focuses on the three following questions:(1) How corporate governance affects technological innovation, in which aspects? (2) What is the difference between the different corporate governance mechanisms in the technological innovation of listing companies? (3) Whether there is interaction between the different corporate governance mechanisms and it has an impact on the technological innovation of listing companies.By answering the above three basic questions, This paper clarifies the basic mechanism of the impact of corporate governance on technological innovation, and draws the following four main conclusions:(1) Executive incentive has a significant positive impact on technological innovation. The results show that there is a positive correlation between executive compensation incentive and technological innovation as well as executive equity incentive and technological innovation. (2) There is a positive correlation between board governance and technological innovation. It is found that the size of the board of directors is positively correlated with technological innovation, and the proportion of independent directors of the board of directors is positively correlated with the technological innovation. (3) Ownership structure can have an important impact on the technological innovation of enterprises, there is an inverse-U shape relation between ownership concentration and technological innovation, therefore moderately concentrated ownership structure is more conducive to enterprise technological innovation. (4) Ownership structure can regulate the relationship between executive incentive and technological innovation, board governance and technological innovation. The relationship between executive compensation incentive, equity incentive and technological innovation will be significantly regulated by the equity concentration as well as the relationship between the proportion of independent directors and technological innovation.Finally, based on the theoretical analysis and empirical test, this paper puts forward the optimization measures of the corporate governance system, which is based on four aspects, including:(1) Make full use of the positive factor of corporate governance which can prompt technological innovation; (2) Adjust and configure a rational degree of equity concentration; (3) Attach importance to the influence of corporate governance on technological innovation; (4) Measure the technological innovation in many aspects and dimensions. Based on the above four aspects, This study deeply analyzes how to promote the technological innovation through the improvement of corporate governance structure and mechanism, committing to providing a dynamic mechanism for the technological innovation of listing Corporation in China.