A Research On The Impact Of Famine On Corporate Innovation

In the era of the increasing competition and global economic integration,the economy of our country has experienced a period of rapid development to a stable development since the reform and opening-up.At present,our country is at the important stage of the “innovation-driven development strategy”,and since the18 th of the Party,The Central Committee of the Party attaches great importance to the innovation of science and technology.If enterprises want to survive and develop continuously,they must constantly improve their level of independent innovation and enhance their own competitiveness.The national economy as a whole depends on the development of enterprises.Therefore,the level of innovation ability of enterprises represents the level of innovation of the country,and the decision-making of enterprises is mainly decided by the executives,and a large part of it is influenced by the individual management style.The period from 1959 to 1961 is a three-year difficult period in China,which is called "Great Famine." This natural disaster experience brought heavy physical and psychological harm to people at that time.So what is the impact of this painful memory on the level of innovation of the companies they managed in the future,as a result of the impact of this painful memory on their childhood executives?This is the main problem to be studied in this paper.Based on the sample of A-share listed companies in Shanghai and Shenzhen stock markets from 2007 to 2017,this paper studies the influence of the experiences of "Famine" in senior executives' childhood on the innovation level of their companies.First of all,this paper combs the relevant literature about executive experience,internal and external influencing factors of enterprise innovation,and the influence of individual characteristics on corporate innovation.Secondly,this paper sets the executive as the general manager,using R&D investment and patent application to measure the level of innovation input and output respectively.In the empirical analysis,this paper uses the Tobit regression model to study the impact of senior executives' famine experiences on corporate innovation.The results show that the "Great Famine" experience in their childhood has a significant inhibition on the level of innovation of their companies.The specific performance is as follows:(1)When the senior executives experienced the "Great Famine" in their childhood,the innovation input and output are significantly lower;(2)Executives born in famine-stricken areas will produce less innovation in their companies than in other regions;(3)In the sample of state-owned enterprises and private enterprises,this kind of negative influence still exists,and the level of innovation has no significant difference between them.(4)Famine experiences significantly inhibit innovation no matter the company is high-tech or non-high-tech.Furthermore,in the mechanism analysis,this paper uses three indicators to measure management style,namely,asset-liability ratio,short-term liabilities and net cash of net profit.The results show that the managers who have experienced the "Great Famine" tend to be more conservative,the main performance is that the ratio of assets to liabilities is lower,the short-term liabilities are less,and the manager prefer to hold cash.In the part of robustness test,this paper tests the empirical conclusion by replacing the experience variable of "Great Famine",the sub-sample of market-oriented process degree,Heckman two-stage regression method,IV method and PSM method,and the results are still robust.In the conclusion part,this paper summarizes the basic conclusions,and offer policy recommendations from government and enterprises.This paper discusses the relationship between senior executives' famine experience and enterprise innovation,which enriches the academic research on senior executives' personal experiences,and also provides a new research perspective for enterprise innovation.In addition,through a comparative study of the severity of famine in different regions,and the mechanism analysis of the impact of famine on innovation,the research contents of executive experience and enterprise innovation are expanded.The research in this paper is helpful for enterprises to attach importance to the individual heterogeneity of senior executives and choose the most suitable executives for the company.