Ownership concentration, managerial compensation and technology innovation choices

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Science Research Management ›› 2015, Vol. 36 ›› Issue (4) : 48-55.

Yang Huijun, Yang Jianjun

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Abstract

We analyze the impacts of ownership concentration on technological innovation based on the agency theory and innovation theories. By introducing managerial compensation as mediate variable, we construct the logical relationship of "ownership concentration-managerial compensation-technological innovation" . After testing our hypotheses utilizing data of 182 companies from Chinese manufacture and high-technology industries with EFA,CFA an SEM analyses,we find that managerial compensation mediate the relationship between ownership concentration and technological innovation;and ownership concentration is negativity related to managerial short-term compensation, but is positively related to managerial long-term compensation. Moreover, short-term compensation goes against radical innovation, but long-term compensation promotes both radical and incremental innovation.

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ownership concentration / radical innovation / incremental innovation / managerial compensation

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Yang Huijun, Yang Jianjun. Ownership concentration, managerial compensation and technology innovation choices[J]. Science Research Management. 2015, 36(4): 48-55

References

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