Corporate Innovation,Science And Education Resources And Firm Value

The development of China's economy growth has now become an innovative economy growth(Hong,2013).As the basic elements of economy growth,enterprises are the subjects of innovation.The factors that affect corporate innovation and the economic consequences of corporate innovation have been the subject of a large and growing body of research in finance and accounting.However,as a crucial affecting factor of corporate innovation,the science and education resources have long been neglected by researchers.How science and education resources would influence corporate innovation is still eluded prior research.The innovative activities of corporates are not come from nowhere but relied on the basic resources of the society.The technology powers of Chinese companies are relative weak and innovation abilities of Chinese firms are still deficient.In order to fully release the benefits of innovation,companies have to rely on outside resources-science and education resources.In the provinces that have abundant science and education resources,companies can invest more on innovation activities and therefore enhance their values through the industry-university-research cooperation.So,it is necessary to empirically investigate whether the science and education resources of a province can enhance the investments of corporate innovation and company values and what is the path of this enhancement.This paper takes all Chinese listed companies(except those in financial industry)from 2007 to 2015 and measures the provincial science and education resources in numbers of colleges,populations of senior college professors,the numbers of national science fund,science expenditures of the government,numbers of patents and populations of college graduate students.My research finds that the provincial science and education resources can enhance the corporate innovation activities and that the provincial science and education resources can enhance company values.In path analysis,I find that corporate innovation activity is the mediation factor.