Research On The Relationship Among Executives Incentives?R&D Investment And Enterprise Financial Performance

Nowadays,the era of knowledge-driven economy makes more and more people realize that the technological innovation is the basis for enterprises to survive and develop.And the R&D activities are the inexhaustible power to achieve scientific and technological innovation.In 2016,China is going to start the"Thirteen-Five-Plan",and proposes to implement innovation-driven strategy explicitly.In recent years,our country has made significant progress in terms of R&D investment,scientific and technological output and so on.Now,both our country and enterprises are increasing R&D investment continually,at the same time,we need to know how does the R&D investment contribute to enterprise performance exactly?With the improvements of research contents and matureness of research methods,scholars begin to explore other factors which may have influence on the relationship between R&D investment and enterprise performance,in addition to discuss the direct relationship between the two only.R&D activities will have gone through a long period of time,so they may be affected by human factors largely,it is necessary for us to have focus on the study of human behavior.Executives have the influence not only on the decisions,but also on the executions of R&D activities.So it is worthy to discuss under the same condition,differences in the level of incentives will whether change the degree of R&D investment affecting enterprise performance or not.Well among the existing studies,researchers still pay most of their attention to the interaction between the two among the concerns of executives incentives?R&D investment and enterprise performance,such as the effect of executive incentive on R&D investment?R&D investment effect on enterprise performance and so on.These analyses are still direct connections;the disadvantages are ignoring the effectiveness of R&D activities results,or omitting the presence of uncertainty from the R&D input to output.How is the effect of implementing R&D activities?Does the R&D funding translate into the contribution to enterprise performance validly?Can executive incentives promote transformation of R&D results effectively,thus have moderating effect on R&D investment and enterprise performance?With these questions,this dissertation is aim to analyze the relationship between R&D investment and enterprise financial performance,at the same time,we focus on the analysis of moderating effect of executive incentives——the important governance mechanism——or R&D investment and enterprise financial performance.Based on Shanghai and Shenzhen A-share listed companies in China which have R&D activities as samples from 2010 to 2014,and through the combining of theoretical analysis and empirical analysis method,the dissertation studies the relationship between R&D investment and enterprise financial performance in detail,at the same time,I also analyze the moderating effect of executive incentives between the two.This dissertation hopes to strengthen the companies' and social attention to R&D activities,and provide theoretical and practical basis for designing effective incentives which can help companies to achieve the goals of sustainable development in order to promote more effective R&D activities,then ultimately enhance the enterprise financial performance.This dissertation totally includes six chapters.The first chapter introduces the background and significance of the research,describes the research ideas,contents and methods,at the same time,I also summarize the innovation of the dissertation in this chapter.The second chapter combs?summarizes and evaluates the researches overview in domestic and abroad in three aspects——the relationship between R&D investment and enterprise performance?the executive incentives' effect on R&D investment and the moderating effect of governance factors between R&D investment and enterprise performance,thereby I can be inspired to make this dissertation to carry out further research on the basis of existing researches.The third chapter describes the theoretical basis of this dissertation,and then proposes three hypotheses of the dissertation.The fourth chapter selects the sample data,defines variables and builds models.The fifth chapter tests hypotheses through the hierarchical regression and subgroup analysis,there is also robustness tests in the fifth chapter.The sixth chapter draws research conclusions,then makes reasonable suggestions,at the same time,notes the limitations of this dissertation,and prospects the future research directions.The dissertation's results are as follows:Firstly,R&D investment can obviously promote enterprise financial performance.The larger R&D investment,the better financial performance is.R&D investment has a significant positive impact on lagging enterprise financial performance.This positive effect had the maximum value in the first-lagged time,and then gradually reduced over time,remaining at around three years.R&D investment has a positive effect for enterprises long-term development.Secondly,executive pay incentive is a homogeneous moderator which can change the strength of R&D-Firm performance,as well,its effect is positive.Thirdly,executive equity incentive is a pure moderator which can moderate the relationship between R&D investment and enterprise financial performance positively.This dissertation provides some references to improve listed companies'executives incentives in our country,in order to increase R&D investment and utilization effect,then will enhance the independent innovation,ultimately promote enterprise financial performance.