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Original Research

THE IMPACT OF SOCIAL CAPITAL, RISK TAKING AND CORPORATE GOVERNANCE ON INNOVATION INVESTMENT OF CHINESE LISTED FIRMS

XIUJUAN HUANG 1, and KRISADA SUNGKHAMANEE 2.

Vol 19, No 11 ( 2024 )   |  DOI: 10.5281/zenodo.14233440   |   Author Affiliation: Faculty of Innovation and Management, Suan Sunandha Rajabhat University, Bangkok, Thailand 1,2.   |   Licensing: CC 4.0   |   Pg no: 523-533   |   Published on: 21-11-2024

Abstract

Social capital is an important driving force for Corporate innovation investment in companies, and plays an indispensable role in enhancing their competitiveness and market position. The article explores the impact mechanism of Social capital on Corporate innovation investment through research on listed companies in Guangdong Province. Based on 311 samples and structural equation modeling (SEM) analysis, it is found that Social capital has a significant positive impact on Corporate innovation investment, with an impact coefficient of 0.224. In addition, the direct impact mechanism also finds that Social capital has a significant positive impact on Risk-taking, Risk-taking has a significant positive impact on Corporate innovation investment, Social capital has a significant positive impact on Corporate governance, and Corporate governance has a significant positive impact on Corporate innovation investment; The indirect impact mechanism is manifested as the mediating effect of Risk-taking and Corporate governance on the impact of Social capital on Corporate innovation investment. The conclusions of these quantitative analyses are still validated in subsequent qualitative analyses. By interviewing 15 employees and relevant experts of listed companies in Guangdong Province, and conducting in-depth analysis of the interview text, we can not only prove the reliability of the quantitative analysis results, but also further supplement the research results.


Keywords

Social Capital, Risk Taking, Corporate Governance, Innovation Investment.