Study On The Relationship Between Executive Incentive And R&D Investments Of Family Enterprises

In response to the demand of Market transition and globalization competition,family enterprises are constantly improving their governance structure.The long-lasting of family ownership make it possible for family owner to spend more on R&D.While the managers who have the rights to configurate and manipulate the resources of enterprises may make conflicting decisions due to private interests of their own.So how is the relationship between executive incentive and R&D investments and the relationship between R&D accounting policy choice and R&D investments in family enterprises?Taking 1356 listed family enterprises that revealed R&D investments and had complete data during 2011 and 2014 as samples,then on the basis of research status and relevant theories at home and abroad,this paper puts forward research hypothesis,selects samples,set variables and build models at last.It adopts the normative analysis and multivariate linear regression analysis,introduces moderator variables and uses SPSS18.0 software for the empirical analysis to study the relationship among family ownership and family control,executive incentive and R&D investments,thus provides the experience basis for the R&D investments of family enterprises.This paper uses two moderators,family ownership and family control,to empirically test their moderation of the correlation between executive incentive and R&D investments.The results show that:(1)In family enterprises,both executive equity incentive and executive compensation incentive are positively related to R&D investments,it shows that executive incentive does have increased the R&D investments of family enterprises.(2)Family ownership is the half moderator of the relationship between executive equity incentive and R&D investments,but it does not moderate the relationship between executive compensation incentive and R&D investments;(3)Family control is the homogeneous moderator of the relationship between executive equity incentive and R&D investments,while it is the half moderator of the relationship between executive compensation incentive and R&D investments.(4)R&D accounting policy choice is positively related to R&D investments,it shows that R&D investment intensity will increase when family enterprises choose R&D capitalization processing,so as to promote enterprises' technological innovation,but if family firms choose R&D cost processing,it has no significant effect on its R&D investments.Finally,it makes a conclusion of the empirical research results,and puts forward some suggestions to help family enterprises to make decisions on the aspects of executive incentive,R&D investments,R&D accounting policy choice and so on as a reference,and help the family enterprises to improve innovation ability and promote their sustainable development.