Institutional Environment, Executive Equity Incentive, and Enterprise Innovation: The Case of China

Yu Haijie and Li Hong ()
Additional contact information
Yu Haijie: School of Economics, Tianjin University of Finance and Economics, 25 Zhujiang Road, Hexi District, Tianjin, 300222, China
Li Hong: School of Economics, Tianjin University of Finance and Economics, 25 Zhujiang Road, Hexi District, Tianjin, 300222, China

Entrepreneurship Research Journal, 2024, vol. 14, issue 4, 1921-1949

Abstract: The increase in national-level innovation driven by corporate innovation is an inherent requirement for the current shift from high-speed growth to high-quality development in China’s economy. In this study, we empirically analysed the influence of the institutional environment on corporate innovation and its underlying mechanism based on panel data of Chinese A-share listed companies from 2008 to 2016. The empirical results demonstrated that the institutional environment is conducive to the improvement of corporate innovation, and this result is validated by further robustness tests. The analysis of the companies’ subsamples showed that the stimulation effect of the institutional environment on corporate innovation is more significant in Central and Western China than in Eastern China. The role of the institutional environment is also more evident in non-state-owned small and medium-sized enterprises. Further analysis demonstrated that investment in R&D plays a mediator role in the context where the institutional environment promotes corporate innovation, and the executive equity incentives in this process have a moderating effect.

Keywords: enterprise innovation; executive equity incentive; institutional environment (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/erj-2022-0383 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:erjour:v:14:y:2024:i:4:p:1921-1949:n:1012

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/erj/html

DOI: 10.1515/erj-2022-0383

Access Statistics for this article

Entrepreneurship Research Journal is currently edited by Chandra S. Mishra and Ramona K. Zachary

More articles in Entrepreneurship Research Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().