Innovation Performance and Influencing Factors of Expansive Listed Companies

Rongda Chen,Zhefan Piao,Zhaohua Xiao,Binbin Miao

doi:10.12973/ejmste/77923

Abstract

The super efficiency DEA model and panel Tobit model were used in this study to conduct empirical research on innovation performance and its influencing factors in expansive companies based on patent and annual report data for A-shares, dilated listed companies in China from 2009 to 2015. Our results suggest that innovation performance in Chinese listed companies is generally stagnating at a low level, but scores for computer, communications equipment, electrical machinery, chemical, and pharmaceutical industries are high. There are significant differences in innovation performance between internal and external expansion companies. The internal expansion scale shows a significant negative correlation with innovation performance, while there is a “U” shaped nonlinear relationship between external expansion and innovation performance; the turning point appears when the external expansion scale is 0.2, that is, it is significantly negative to innovation performance below 0.2 (and vice versa). Firm age, firm size, executive pay, average age of executives, and depreciation have a negative impact on innovation performance, while equity concentration, capital intensity, and financial leverage have a positive impact on innovation performance.

Highlights

Modern China’s economic structural contradictions are intertwined, downward pressure has increased, and economic development has entered a stage referred to as the “new normal”
The super efficiency DEA model and panel Tobit model were used in this study to conduct empirical research on innovation performance and its influencing factors in expansive companies based on patent and annual report data for A-shares, dilated listed companies in China from 2009 to 2015
Our results suggest that innovation performance in Chinese listed companies is generally stagnating at a low level, but scores for computer, communications equipment, electrical machinery, chemical, and pharmaceutical industries are high

Summary

Introduction

Modern China’s economic structural contradictions are intertwined, downward pressure has increased, and economic development has entered a stage referred to as the “new normal”. The engine of development has transformed from the traditional factor-driven to innovation-driven, and the government has begun to vigorously promote so-called “supply-side reform”; the primary goal of such reform is improving productivity through industrial restructuring. The demand for structural adjustments and upgrades must be met through innovation (Liu et al, 2015; Li and Zheng, 2016). To cope with downward pressure on the economy and the impact of technological innovation, more traditional enterprises have sought to enhance their capacity for innovation and to fit better into the transition process by increasing internal investment, mergers and acquisitions, or other forms of expansion in the capital market. M&A activities have supported rapid expansion both at home and abroad, and the amount of M&A is increasing yearly (Table 1)

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Conclusion