Research On The Impact Of Listed Companies Management Incentive On R&D Investment

Under modern enterprise system,company ownership and management rights separate,principal and the agent often have different targets and risk preferences,therefore,principal-agent problem appears.Management incentive can narrow the target differences between the principal and the agent.With the ability of independent innovation getting much attention,R&D investment attracts the attention of enterprises,successful R&D investment can help enterprises obtain competitive advantage,occupy the market,improve the core competitiveness of enterprises,but the high risk of R&D investment also put forward higher requirements to enterprises.How to make a more profound understanding and insight into market opportunities,how to effectively motivate the management to carry on R&D investment,is a challenge.Taking all the listed company that carry out management incentive in Shanghai and Shenzhen board market during 2010 to 2014 as the research object,we select 218 samples,analyze the status of management incentive.Based on the theoretical basis of the principal-agent theory,incentive theory,technology innovation theory,through the construction of the multiple regression model,we study the relationship between management incentive and R&D investment.the study finds:(1)As a whole,the relationship between management incentive and R&D investment is a weak inverted U type curve;(2)In different board market,influence of management incentive on R&D investment is quite different.Management incentive effect is not significant between the main board listed companies.On small and medium board,relationship is inverted U type curve,the inflection point is 3.97%.On growth enterprise market,the relationship is significant linear,there is no quadratic effect.(3)The impact of management incentive on R&D investment is quite different under different ownership.For state-owned enterprises,the relationship between management incentive and R&D investment is inverted U type curve,for non state-owned enterprises,the relationship is obvious linear.(4)For any board or ownership,the management incentives of the high-tech industry are significant under the 10% significance level.Finally,we put forward some methods and advice to improve our management incentive system and R&D investment,in order to have a positive effect for corporate governance,management incentive system design and technological innovation investment.