Empirical Analysis Of R&D Investment,Pay Gap And Enterprise Performance

At present,the knowledge economy is highly developed,and human resources are the most valuable resources in the enterprise.Effective senior management compensation incentive mechanism is of great importance to motivate the work enthusiasm of senior executives,alleviate the first type of agency problems and meet the shareholders’ demands.At the same time,technological innovation is an important way for enterprises to improve their performance and gain competitive advantages.The process of technological innovation is also a process of research and development,which requires a large amount of research and development expense.Modern enterprises are aware of the importance and importance of technological innovation to improve their competitiveness,otherwise it will affect the stability and development of enterprises.Therefore,R&D investment should be taken seriously by enterprises.How to motivate company executives to increase innovation and improve core competitiveness of enterprises has become an important topic in academic and practical circles.It is widely believed that the performance-based compensation contract is one of the main mechanisms to resolve the conflicts between management and shareholders.However,whether the compensation contract meets the development needs of our modern company or whether it can inspire the innovation enthusiasm of the management of the company is a hot topic nowadays.Thus,the relationship between executive pay gap and corporate performance is a key issue in how to motivate executives to innovate.So,in the listed companies in our country,the management of compensation gap present what kind of expression form,what is the executive incentive rules,whether the enterprise executive pay gap have a promoting effect on the management innovation,this incentive effect with the external factors and internal factors which change form,that is the purpose of this study.Through research,this paper tries to find out some regularity of executive compensation incentive mechanism of listed companies,design effective compensation incentive mechanism,in stimulating the enthusiasm of executives for innovation,promote enterprise’s innovation ability and efficiency,in order to make the enterprise success carries on the transformation and upgrading and realize sustainable development.This article based on the perspective of corporate governance,the research under the background of the current Chinese economy whether executive pay gap on the executive incentive,whether the enterprise innovation incentives have a regulatory role on executive pay gap.Based on the tournament theory,behavior theory and the theory of technical innovation on the basis of theoretical analysis,data collection executive compensation and corporate performance and R&D input and make use of the simultaneous equations model to carry on the empirical analysis.The results show that the research of R&D expenditure can make us more systematically understand the influence of the internal pay gap on the company’s accounting performance.It is necessary to encourage enterprises to take advantage of the pay gap.When the company’s performance is adversely affected,especially when there are research and development projects,the pay gap has a positive impact on the accounting performance of the company.It shows that the incentive effect of pay gap is effective when the company’s performance is adversely affected.The first part is the introduction,which explains the research background of this paper,clarifies the research significance,introduces the research methods and ideas adopted in this paper,and clarifies the innovation and shortcomings of this paper.The second part is the literature review section.This paper summarizes the related research at home and abroad,and reviews the literature in the end.Institute of the third part illustrates the paper based on the background for the system,and combining with related theory research results,in the case of executive compensation contracts to make,and illustrates the system background of corporate r&d input,the introduction of the concept of application in this paper,in addition to the application of executive pay gap,as well as theory and so on R&D.The fourth part focuses on the research design,puts forward the hypothesis,determines the selection of the sample and the source of the data,applies the variable definition,sets about the design of the model,and completes the construction.The fifth part is the empirical analysis part.Firstly,the salary gap of the executive pay of listed companies is studied,and the correlation between the judgment and enterprise performance is determined.Secondly,on the basis of empirical regression simultaneous equations model,discusses the problems of listed companies innovation investment,the correlation between corporate performance and to determine executive pay gap,the effects of the regulation;Finally,the research model is tested with the substitution variable of accounting performance.The sixth part obtains the research conclusion,puts forward the policy proposal.This paper summarizes the research of this paper and puts forward rationalization Suggestions for all aspects.Besides,it also points out the research prospect.This paper uses the research data of 2007-2015 to analyze the relationship between executive pay gap and the accounting performance of listed companies,and get the preliminary results.Compared with previous studies in this paper,the possible contributions as follows:(1)in this paper,from the perspective of enterprise innovation,a new study of relationship between executive pay to corporate performance(2)using simultaneous equation model regression,to solve the problem of the endogenous the major shareholder governance.(3)in this paper,we study the conclusion on how to better analyze executive pay,the relationship between the enterprise innovation and enterprise performance,help enterprise when making company executive pay more conducive to enterprise development measures.