Abstract
Taking listed manufacturing companies in China from 2015 to 2019 as research samples, this paper studies the influence of ownership structure on enterprise innovation level from the perspective of enterprise life cycle by using fixed effect panel regression method. The result shows that when enterprises are at the stage of growing and mature phases, the influence of equity structure on innovation level is similar to that of the whole sample, that is, the increase of ownership concentration and senior executives' shareholding ratio will inhibit enterprise innovation while the increase of ownership balance will promote enterprise innovation. When the firm is in recession, the improvement of ownership concentration and ownership balance will promote the firm's innovation, while the increase of executive ownership will inhibit the firm's innovation. The research enriches the research of influencing factors of innovation, and provide theoretical support for enterprises to improve innovation level by optimizing ownership structure.
Highlights
Today's society is in the era of knowledge economy, with the rapid development of science and technology and increasingly fierce market competition
Guo, Zhu and Zhang use three-stage DEA model to represent ownership structure with the proportion of controlling shares of major shareholders, and conclude that there is an inverted "U" relationship between ownership structure and enterprise innovation[3]; Based on the data of high-tech enterprises from 2010 to 2013, Zhu and Zhou show that the improvement of equity balance will promote enterprise innovation, and there is a significant nonlinear relationship between the proportion of executives' shareholding and the level of enterprise innovation[4]; Taking 73 small and medium-sized listed companies in Yang as research samples, it is found that executive ownership is positively correlated with enterprise innovation, while foreign ownership is negatively correlated with enterprise technological innovation [5]
From the regression results of the whole sample, growth period and maturity period, we can see that the ownership concentration and the proportion of senior executives' shareholding are significantly negatively correlated with the innovation level, that is, the increase of the shareholding ratio of the largest shareholder may aggravate the problem of "one share dominating", and reduce the level of enterprise innovation; there is a significant positive correlation between the degree of equity balance and the level of innovation, which indicates that the checks and balances of other major shareholders are beneficial to avoid the large shareholders occupying the innovation funds, making joint decisions by many parties, and supervising the management's operation behavior, so as to promote enterprise innovation
Summary
Today's society is in the era of knowledge economy, with the rapid development of science and technology and increasingly fierce market competition. Based on the perspective of enterprise life cycle, taking listed companies in China from 2015 to 2019 as research samples, this paper divides the life cycle of enterprises by cash flow combination method, and analyzes the similarities and differences of the impact of ownership structure on innovation level of enterprises in different life cycles. The main contributions are as follows: First, the impact of ownership structure on innovation level of enterprises is explained from the perspective of life cycle, which enriches the research results of influencing factors of innovation level to a certain extent. In different stages of the enterprise life cycle, taking improving the innovation level as the starting point, it provides strong empirical support for the company executives to optimize the ownership structure and improve the internal governance, which is conducive to the reasonable and efficient R&D activities of enterprises
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