Impact Of Executives' Equity Incentives On R&D Investment

In recent years,China will encourage independent innovation to rise to the national strategic level,and R & D investment is a key link in enterprise independent innovation.Enterprises mainly realize their core competitive advantages through accumulation and creation of knowledge.Although enterprises increase their research and development strength is conducive to improving their core competitiveness,but due to the huge investment in research and development investment,long payback period,the low probability of success of research and development,executives may be in pursuit of maximizing personal interests through diversification Investment and other means to avoid R & D investment,the final performance of enterprises lack of R & D investment.Based on this,equity incentive as an important measure of internal governance resulting.Equity incentive can effectively relieve the conflict of interest between the top management and the shareholders and bring the interests of the top management and the shareholders into conformity.In 2006,China promulgated the Measures for the Administration of Equity Incentives for Listed Companies(Trial Implementation).As of July 2017,1024 listed companies in China have implemented equity incentive plans,accounting for 29% of the total number of listed companies.Thus,more and more listed companies in China have implemented equity incentive system.In addition,high-tech enterprises in recent years R & D investment levels showed a clear upward trend,the most representative of the data and timeliness,can directly reflect the overall level of independent research and development of China's high-tech enterprises.Therefore,this article selects high-tech listed companies as research samples.However,at present,how does equity incentive system encourage executives to be guided by R & D and innovation? Is it really able to promote high-tech enterprises R & D investment? What is the relationship between executive incentive and corporate R & D investment? These issues still need further thinking.Based on innovation economics,this paper empirically analyzes the impact of equity incentive on R & D investment behavior of Chinese high-tech enterprises,and probes into the possible connection between executive incentive and R & D investment.First of all,this article mainly introduces the background and significance of the topic selection,expounds the research methods and ideas,the research framework of the full text and the innovation point of this article.Secondly,this dissertation systematically reviews the impact of executive incentive and R & D investment on R & D investment in three aspects: the relationship between executive incentive and R & D input,the influence of different scenarios on executive incentive and R & D investment,and the impact of different types of executive incentive on R & Foreign scholars related research results,analysis of the main context of the existing research,and then clear the research ideas of this article.Thirdly,define the core concepts of equity incentive and R & D investment designed in this paper,at the same time,elaborate the theoretical basis of senior executives' equity incentive and R & D investment,and basically analyze the mechanism of senior manager's equity incentive on R & D investment.Based on the analysis of the mechanism of action put forward the corresponding research hypothesis.Finally,based on the previous theoretical analysis,empirical tests were conducted to verify the rationality of the research hypothesis proposed in the previous section.This article screened the high-tech listed companies in Shanghai and Shenzhen from 2012 to 2015 as the research object,and established the multiple linear regression model to test the impact of executive incentive on the enterprise R & D investment,and under the regulation of ownership concentration,Relationship,and empirical analysis of the test results,with a view to China's high-tech listed companies executives incentive contract design and implementation of research and development to provide a useful reference.This paper mainly uses the combination of empirical research and normative research,and analyzes the relationship between executive incentive and corporate R & D investment both quantitatively and qualitatively.First of all,this paper empirically tests the linear relationship and non-linear relationship between executive incentive and corporate R & D investment,and analyzes the relationship between the two in the end.On the basis of this,we also increase ownership concentration as a regulatory variable to verify The Effect of Ownership Concentration between Executives' Equity Incentives and Enterprise R & D Investment.The research conclusions drawn in this paper are as follows: There is no significant positive correlation between executive incentive and corporate R & D investment,which may be due to the relatively high proportion of senior executives holding high-tech listed companies in our country,resulting in moat defense effect,Thus inhibiting the corporate R & D investment behavior;there is an inverted "U" relationship between executive incentive and corporate R & D investment,and with the increase in the proportion of senior executives holding,corporate R & D investment intensity appears decreasing trend,we can see that high In addition,in order to further analyze the moderating effect of ownership concentration on executive incentive and corporate R & D investment,this paper selects equity concentration as the regulatory variable to group Test and found that the ownership concentration negatively regulates the relationship between executive incentive and corporate R & D investment intensity,that is,the phenomenon of "one single dominant" will lead to the failure of senior executive equity incentive to effectively promote R & D investment.In view of the above conclusions,this paper puts forward some suggestions from three perspectives: the government,the enterprises themselves and the external regulatory agencies respectively.Firstly,the government can broaden the scope of equity incentive stock by establishing laws and regulations.Secondly,Choose a reasonable incentive,and emphasize the concept of strengthening R & D investment in the design of equity incentive system,considering the influence of "one single dominant" and emphasizing the importance of retaining executives and key technical personnel;finally,the supervisory department should step up its implementation Force,effective supervision of the capital market.