Research On The Relationship Between R&D Investment And Corporate Performance Regulated By Executive Incentive

The 233 listed companies in China's manufacturing listed companies which disclose R&D investment intensity and executive incentive data for 2011-2016 had been taken as the research sample;the 2011-2016 periods have been used as a research sample to test the relationship between R&D investment intensity and firm performance(ROE)relationship and whether the executive incentives regulate the relationship between the R&D and firm performance;on this basis,according to the different nature of the actual controller,the sample is divided into two sub-samples which are state-controlled enterprises and non-state-controlled enterprises,then this paper tests whether the regulatory effect on the relationship between R & D investment intensity and firm performance is different among enterprises with different ownership types.First of all,this paper reviews relevant literature about the relationship between R&D investment intensity and firm performance,and the influence of executive incentive on the relationship between the two.On the basis of this,this paper forms the research ideas and research methods.Secondly,this paper defines the related concepts of R&D investment intensity,corporate performance and executive incentive.Based on the theory of technological innovation and principal-agent theory,the process of the R&D investment intensity on firm performance is explained,and the incentive mechanism may improve the relationship between R & D investment intensity and firm performance.On the basis of these analysis,this paper put forward the research hypotheses.Then,by using the method of stratified regression and group regression,this paper tests the impact of R&D investment intensity on firm performance and the regulatory effect of executive incentive mechanism on the relationship between the two,and discusses the empirical results.Finally,the paper puts forward the relevant policy suggestions and points out the extant deficiencies in the research and the future research prospects.The main conclusions of this paper are as follows: the relationship between R&D and current corporate performance is negatively correlated,and the impact of R&D on corporate performance has a lagged effect.The executive compensation incentive and the executive stock option incentive have a positive effect on the relationship between the R&D investment intensity and the enterprise performance.From the nature of the adjustment variable,the executive compensation incentive is a semi-adjusted variable,and in the non-state-controlled enterprises,executive compensation incentive and executive stock option incentive can both positively regulate the relationship between R&D and firm performance.However,in state-controlled enterprises,the effect of executive compensation incentive and executive stock option incentive on the relationship between R & D investment intensity and firm performance is not significant.Finally,based on the research conclusions,some policies and suggestions are put forward to optimize the incentive system of senior executives which can improve the relationship between R&D and corporate performance.