Government Subsidy,Characteristics Of Executive Team,and Innovation Output

After entering the "14th Five-Year Plan" period,China readjusted its policies towards strategic emerging industries,with the core being to continue increasing funding and policy support for innovation and R&D activities in these industries,in order to ensure the country’s international competitiveness in these fields.However,the effectiveness of government subsidies often depends on the abilities and qualities of corporate executives,who are responsible for leading and managing various aspects of the enterprise.The effectiveness of subsidies in stimulating innovation in strategic emerging industries,as well as the influence of executive management on subsidy policy,are widely discussed topics.These issues not only involve the interests of governments and enterprises,but also affect national economic growth and competitiveness.Therefore,how to better implement government subsidy policies and improve the abilities and qualities of corporate executives is an urgent problem that needs to be solved.This article uses theoretical deduction and empirical testing methods to study the impact of government subsidies on innovation output of listed companies in strategic emerging industries,as well as the influence of executive team characteristics on the relationship between the two.Firstly,based on market failure theory,executive ladder theory,and innovation theory,this paper establishes a theoretical framework and deduces four research hypotheses:(1)government subsidies have a positive effect on innovation output of listed companies in strategic emerging industries;(2)the age characteristics of executive teams negatively moderate the relationship between government subsidies and corporate innovation output;(3)the proportion of female executives negatively moderates the relationship between government subsidies and corporate innovation output;(4)the proportion of executive team with R&D backgrounds positively moderates the relationship between government subsidies and corporate innovation output.To verify the above hypotheses,this paper uses China’s listed companies in strategic emerging industries from 2011 to 2020 as the sample,taking into account the features of the discrete and nonnegative dependent variable in the model,and using negative binomial regression model for regression testing.The regression results show that the promotion effect of government subsidies on innovation output has passed the significance test,and the moderating effects of executive team age and R&D background have also passed the significance test,but the moderating effect of female executive proportion has not passed the significance test.Secondly,this paper conducts robustness tests using substitution of the dependent variable,replacement of the research model,and propensity score matching.The results show no significant difference from previous research.Finally,this paper uses group regression to examine the effects of ownership structure and enterprise regional factors on the incentive effect of government subsidies for innovation and finds that compared with state-owned enterprises,private enterprises have more advantages in utilizing government subsidies for innovation,and government subsidies are more conducive to promoting innovation output when enterprises are located in the eastern and central regions of China.Based on the regression results,this paper provides the following insights: continue to increase government subsidies;adopt differentiated subsidy policies for different regions;enterprises should plan reasonably and improve information disclosure;optimize the structure of executive teams and improve the quality of executive talents.Through this research,this article has important implications for the government’s formulation and improvement of subsidy policies,enterprises’ improvement of innovation output,and the construction of executive teams.