Executive Incentives,Ownership And Technological Innovation Investment

In 2016,the country continued to emphasize “innovation” in the “Thirteenth Five-Year Plan ”,explicitly proposed to place innovation at the core of the national development overall,and strive to enhance the capability of independent innovation.Enterprises are important carriers for implementing national innovation activities and are the main driving force for national innovation and development.At the same time,technological innovation can provide impetus for the continued economic growth of enterprises and enable enterprises to better cope with market competition.Therefore,whether it is the company's own survival and development needs,or the country's strategic objectives,companies should pay attention to innovation.In the enterprise,executives are the main force in promoting enterprise technology innovation.However,the high risks,high uncertainties,and slow returns of technological innovation have made it difficult for senior executives to invest in innovation.An effective incentive mechanism can align the interests and risk preferences of owners and senior executives,prompting executives to focus on corporate technological innovation and increase technological innovation input.In the existing studies,the role of implicit executive incentives such as on-the-job consumption in technological innovation investment has been neglected,and there is a lack of understanding of the heterogeneity of equity and options.Based on this,this paper studies the relationship between executive incentives and technical innovation investment including monetary compensation,equity,options,and on-the-job consumption incentives.At the same time,due to the special background of China's property rights system,the nature of the property rights of enterprises is different,which may affect the incentive effect of executive incentives on technological innovation investment.Therefore,this paper further analyzes the relationship between executive incentives and technological innovation investment based on the nature of corporate property rights,explores reasonable executive incentive mechanisms thatincrease corporate technological innovation investment and enhance corporate technological innovation capabilities,and also invests in executive incentives and technological innovation.The mechanism of action provides theoretical and empirical evidence.Based on principal-agent theory,management power theory,technological innovation theory and higher-order theory,this paper draws on related research results and mainly studies the following two parts: First,the relationship between executive motivation and investment in technological innovation.This section analyzes and studies the impact of investment in technology innovation from multiple aspects of executive incentives,including explicit incentives and implicit incentives for senior executives.It also distinguishes between equity incentives and option incentives,including monetary incentives and equity.The relationship between incentives,options incentives,on-the-job consumer incentives,and technical innovation inputs.Second,the study of the influence of property right nature on the relationship between executive incentives and technological innovation inputs.This section examines the impact of the nature of property rights as a moderating variable on the relationship between executive incentives and technological innovation investment,and examines whether the differences in the nature of property rights between state-owned and non-state-owned enterprises will affect the incentive effect of each executive incentive approach on technological innovation.This article selects A-share listed companies from 2012 to 2015 as the research object,adopts a combination of theoretical analysis and empirical analysis to study,and draws the following conclusions: First,currency compensation incentives,equity incentives,and options incentives for corporate technology innovation Investment has a significant boost.Second,there is an inverted “U” relationship between on-the-job consumer incentives and technological innovation investments.With the continuous improvement of on-the-job consumption incentives,on-the-job consumer incentives are the first to promote the company's technological innovation investment,but when the maximum value is reached,the on-the-job consumption level The increase hasclearly suppressed the increase in investment in technological innovation.Third,there are differences in the incentive effects of executive incentives between state-owned and non-state-owned enterprises on technological innovation investment: the nature of non-state-owned property rights reinforces the incentive effects of monetary compensation incentives and option incentives on technological innovation investment,while state-owned property rights strengthen the on-the-job consumption.Incentive effect on the investment in technological innovation,the nature of property rights has no significant impact on equity incentives and technological innovation investment.The research contribution and innovation of this paper mainly lies in: when studying the relationship between executive incentives and technological innovation investment,it refines the executive incentives,distinguishes between option incentives and equity incentives,and includes highs including incentives for options and on-the-job consumption incentives.The incentives for management and investment in technological innovation have also been included under the framework of China's special property rights system for research.This paper makes up for the deficiencies of the existing research,and at the same time promotes the investment in technological innovation,and provides a theoretical basis for the reasonable setting of the incentive mechanism for senior executives in our country.