Control power of senior executive, business environment and entrepreneurship

Abstract

Senior executives have the power to formulate and implement strategic decisions of their company. Entrepreneurship is the critical human capital owned by them. To stimulate entrepreneurship, it is important to ensure that the company is controlled by senior executives with entrepreneurial spirit. Taking China's A-share listed companies in 2013-2018 as the objects, this paper discusses the influence of control power of senior executives (executive control) over entrepreneurship, and further explores how each dimension of business environment and their interactions affect executive control and entrepreneurship. The results show that executive control greatly promotes entrepreneurship; high legalization level and intense market competition are favorable for entrepreneurship. The incentive effect of executive control on entrepreneurship can be enhanced by government intervention and market competition, and greatly bolstered through the interaction between legalization level and government intervention, as well as the interaction between market competition and government intervention.