Research On The Influence Of Executive Incentive On Technology Innovation Investment

Hi-tech enterprises are characterized by high investment,high innovation,high yield and high risk.In a competitive market,continuous technological innovation is the key to the sustainable development.Executive incentive has always been considered as an important way to reduce agency costs.In recent years,scholars have found that executive incentives play an immeasurable role in promoting technological innovation activities.There are many types of executive incentive,equity incentive,monetary compensation and perquisite consumption incentiveare mainly applied.These three incentives exist independently,but they interact with each other and play different roles in promoting technological innovation input.Aiming at high-tech enterprises,we should excavate difference utility of different incentives,and find the most efficient executive incentive combination to improve the efficiency of technological innovation.Managerial power is a double-edged sword.It can easily induce executives' opportunism and reduce the effectiveness of executives' incentives while improving decision-making efficiency.Therefore,we should be alert to the negative impact of managerial power on executive incentives.In this paper,on the basis of previous research results,combined with the principal-agent theory,incomplete contract theory,incentive theory and managerial power theory,considering the background of technological innovation,this paper selects listed high-tech enterprises as samples from 2011 to 2015 to build panel data model,uses inductive analysis,comparative analysis and the principal component analysis and multiple linear regression analysis to empirical study.First,we must the relationship between different incentives,then we should study three kinds of incentives deeply and find different utility,and based on the perspective of managerial power,study the influence of managerial power on the executives incentives.The results are respected to provide effective policy suggestions for sustainable development of China's high-tech enterprise executives incentive design and technological innovation.The results showed that: first,perquisite consumption and equity incentive are,perquisite consumption and monetary compensation are also alternative,and the substitution effect of perquisite consumption and equity incentive is more;second,equity incentive,perquisite consumption and monetary compensation are positively related to technological innovation investment,but monetary compensation is not statistically significant;third,equity incentive plays a leading role on the process of technological innovation,monetary compensation and perquisite consumption have positive effect on equity incentive;fourth,managerial power will weaken the equity incentive and perquisite consumption incentive effect,and the negative effects of equity incentive is more.The innovations of this paper include two points,one is the paper consider the inner link between three kinds of incentive methods widely and find different incentive effect on technology innovation.The research will be more deep and used in high-tech enterprises and specific.Two is this paper use principal component analysis method to construct the managerial power variables,explore the impact of managerial power on executive incentive.The conclusions of this paper will provide theoretical support and practical basis for high-tech enterprises in China to improve technological innovation input and establish efficient executive incentive system under new circumstances.Accordingly,the high-tech enterprises need to design the diversified structure of the executive incentive system,to achieve a variety of incentive coordination,optimize the system of equity incentive and give full play to the leading role of equity incentive,improve the corporate governance mechanism and strengthen the supervision of the news media to achieve a comprehensive internal and external supervision system,restricting the management power,reduce the negative impact of perquisite consumption and opportunism behavior.Establishing and standardizing the market of professional managers,selecting high-quality and highly qualified managerial talents,and establishing strict rules and regulations,so as to make executives incentive rationalization and transparency.