| The innovation drive is an inexhaustible driving force for the long-term healthy development of manufacturing companies.It is an important development strategy for the country to further improve its social productivity and further enhance its comprehensive competitiveness.Scientific and technological innovation has gradually risen to the top design of our country.The implementation of innovation-driven and sustainable development strategies is the first important development concept put forward by Xi Jinping and our party at the 18 th National Congress of the Communist Party of China.And basic needs.At present,our country’s labor costs are gradually increasing and the mode of extensive economic development driving economic growth is unsustainable.Only by pioneering innovating and cultivating new economic growth points can we effectively maintain and promote the sustainable and high-quality development of our economy.In the current capitalist market,institutions and risk investors are important participants and their investment behaviors often directly affect the company’s earnings.Professional institutional investors can bring a lot of financial support to the company and also play a vital role in the company’s operations and decision-making.Managers are affected by the characteristics of high innovation costs,long cycles and high risks,which make innovation activities inconsistent with the interests of managers,so they are often indecisive in innovation decisions.Therefore,this paper wants to promote social development by studying how market participants influence company innovation.Based on the background,this paper focuses on the analysis and research of the impact of independent institutional investors(including securities investment funds,QFIIs and social security funds)on the innovation of Shanghai and Shenzhen listed companies based on unbalanced panel data from 2003 to 2017 of A-share listed companies study the mechanism of independent institutional investors influencing the innovation of Shanghai and Shenzhen listed companies.First of all,this article makes a brief summary of the research on institutional investors and corporate innovation at home and abroad and finds that the domestic research on the impact of independent institutional investors on corporate innovation and its mechanism is feasible.Secondly,five hypotheses are proposed based on existing concepts and theories and five models are constructed to match them for hypothesis testing.Finally,based on the above design,the processed data is used for correlation analysis and empirical testing.Through empirical testing,this paper draws the following conclusions:(1)Independent institutional investors can promote company innovation;(2)Independent institutional investors’ involvement can expand external financing channels for the company,reduce information asymmetry problems and reduce financing Costs,thereby alleviating corporate financing constraints and promoting corporate innovation;(3)consistent with the "career concerns model" hypothesis proposed by Aghion et al.(2013),product market competition and institutional shareholding have complementary effects,which means the greater the degree of competition in the product market,the more significant the role of independent institutional holdings in company innovation;(4)Independent institutional investors provide insurance mechanisms for competent managers to encourage managers to be innovative.This insurance mechanism is mainly reflected in providing a salary guarantee mechanism for capable managers to maintain their enthusiasm for innovation and providing career or reputation protection for capable managers.Innovation activities are an important driving force for the company’s sustainable and healthy development and an important guarantee for its core competitiveness.Among the factors that affect company innovation,the ownership of independent institutional investors plays a vital role.However,there are certain gaps between our country’s institutional investors and foreign institutional investors in the perfect capital market in terms of active level,investment scope and capital scale.Therefore,independent institutional investors are inevitably hindered to participate in the company’s innovation project decision-making,which affects the company’s innovation activities.According to the research conclusions,the paper proposes the following three development suggestions from the perspective of the practical implementation of the company’s innovation and development.Enrich the number of independent institutional investors and increase the proportion of independent institutional investors;improve the capital market system and attract QFII and social security funds to participate in a more open attitude;increase the degree of product market competition.The innovation of this article is that,based on the existing research,this paper proposes that the shareholding of independent institutional investors can promote the number of patent applications of the holding company.In order to study this influence mechanism in depth,this paper explains the mechanism of independent institutional investors to promote company innovation from three perspectives : external financing constraints,product market competition and manager insurance mechanism,which expands the Research on the Governance Function of Institutional Investors.Second,empirical research on the mechanism by which independent institutional investors hold shares to improve the innovative output of my country’s listed companies provides an important reference for the company to select appropriate shareholders and builds compensation incentives for the government to guide the development of product markets and capital markets. |
