Research On The Influence Of The Power Of GEM Executives On Enterprise Value

The report of the 19 th National Congress pointed out that "innovation is the first driving force for development and the strategic support for building a modern economic system." It can be seen that actively developing entrepreneurial enterprises and improving the value of entrepreneurial enterprises is an important way to realize China's innovation strategy.The makers of innovation decision-making are the senior managers of the enterprise,which act on various business decisions through their own power and ultimately affect the value of the enterprise.Based on this background,studying the impact of GEM executive power on corporate value is of great significance for achieving innovation strategies.This article reviews and summarizes the literature on corporate value,executive power,and the relationship between them,and incorporates principal-agent theory,modern housekeeping theory,and executive power theory.Taking 2014-2018 as the research interval,this paper selects 415 GEM companies and obtains 2075 observations.The empirical research method is used to explore the relationship between executive power and corporate value.In order to quantify the power of executives as much as possible,this paper draws on the research results of the predecessors and divides the executive power into three dimensions: executive ownership power,executive organization power,and executive personal ability power.The equity concentration and equity balance are used as the proxy indicators of the executive ownership power,and the dumb variables of the two generate the integral variable of the executive ownership power;the dual-job,the size of the board of directors,the proportion of independent directors as the executive power The agent variable,and the dummy variable of the executive organization power is generated by the dummy variable of the three;the executive term is used as the agent variable of the executive's personal ability index,and the dumb variable is used to generate the executive individual.The integral variable of the power.The principal component analysis method is adopted to construct the enterprise value index as a proxy indicator of the value of the GEM enterprise.In order to further study the relationship between executive power and corporate value,this paper takes the internal governance mechanism as the starting point and introduces the internal control as the adjustment variable in the regression model of executive power and enterprise value.The empirical research mainly draws the following conclusions: the greater the ownership power of executives based on equity arrangements,the more beneficial the growth of corporate value;the greater the organizational power given to senior executives by institutions and organizations,the greater the increase in corporate value It is easy to be hindered;The influence of individual executive power and power on corporate value is not significant.High-quality internal control can effectively increase the positive relationship between executive ownership power and corporate value,and can effectively suppress the negative relationship between executive organizational power and corporate value,but it can affect the personal capacity of executives.The relationship between power and corporate value does not have a regulating relationship.Finally,based on the research conclusions,from the different dimensions of executive power and internal control perspectives,the following suggestions are made: from the level of ownership power,companies should establish a sound equity structure and reasonably allocate corporate control;from the level of organizational power,companies should establish effective boards of directors Mechanism to prevent excessive concentration of executive power;from the level of internal control,strengthen internal control audits and establish a reasonable internal control system,so as to rationally optimize the power structure of GEM executives and promote the growth of corporate value.