The Influence Of Executive Compensation Incentive On Self-innovation

Since the upgrade of high-tech products has accelerated and the United States, Germany, Britain, Japan, Korea and other countries have increased their innovation investment gradually, China clearly recognizes the importance of innovation. Besides, in order to get rid of the reliance of other countries, China is not only encouraging innovation, but also emphasizing the independence of the innovation. So encouraging self-innovation to build an independent innovative nation is set as a national strategy in recent years.As an important subject of self-innovation, high-tech companies can represent the innovative companies of our country. Their implementations of self-innovation can reflect the process of all the companies, and their problems which emerge in the process of self-innovation are also representative. Therefore, this thesis bases on the data of high-tech listed companies, focusing on how to motivate executives to make the self-innovation carry out. Specifically, this thesis investigates how the executive compensation level and compensation structure of high-tech companies impact on self-innovation, in order to infer what is the reasonable salary incentive scheme encouraging executives to carry out self-innovation.In fact, the result we gain is that if giving more payment to the executives, self-innovation can be better carried out. And if the rate of long-term compensation to the total payment is higher, the effects will be better.About writing, this thesis includes 6 parts as follows:part1 introduces the topic background and significance, research framework, research methods and some new ideas of this thesis. Part Ⅱ combs the current related research achievements on the impact of executive compensation incentive on self-innovation to clear the research process of this field, and then finds our research topic. Part III defines some relative concepts and details the theoretical foundation of the impact of executive compensation on self-innovation, which focuses on the analysis of the principal-agent theory and incentive theory, to provide theory support for later hypothesis. Part IV designs the empirical analysis and defines the relevant variables. Part V implements the empirical analysis and gains the conclusion. Then makes a summary and points some suggestions out in Part VI.The innovation of this thesis is not only considering single index, but refining the self-innovation into self-innovation input and self-innovation output. As a result, the self-innovation can be measured more completely and a more convincing conclusion can be made. In addition, this thesis attempts to refine the executive incentive into compensation structure and compensation levels which to go on be refined into monetary compensation and equity compensation. It not only focus on executive pay levels, namely the total amount of the executive compensation, but also concerned about the internal structure of it. Doing so will be conducive to improve the thinking and basis for executive compensation.