Research On The Relevance Between Executive Incentive And Technology Innovation Investment

Technological innovation investment is an important part of enterprises' innovation activities and an important guarantee for enterprises to gain competitive advantage and occupy a favorable position in the market.In recent years,the state has issued a series of policies to encourage enterprises to innovate.As the main force of innovation,GEM listed companies have greatly improved their R&D investment.However,compared with western developed countries,Chinese enterprises still have insufficient investment in innovation.How to improve the consciousness of independent innovation and increase the investment in technological innovation is very important for the future development of enterprises,especially for the GEM market of high-tech enterprises.Based on the elaboration of relevant theories,this paper takes the data of GEM listed companies in China from 2012 to 2017 as the research sample,and concretely analyses the relationship between the three executive incentives and technological innovation investment of enterprises.When studying the impact of equity incentive on enterprise innovation,we consider not only the benefit convergence effect but also the trench defense effect.And in-service consumption incentives are also taken into account.This paper finally draws the following conclusions:(1)There is a linear relationship between short-term salary incentive and technological innovation investment,and there is a significant positive correlation.This shows that the more the GEM listed companies pay their executives in monetary terms,the more enthusiastic they will be in technological innovation.(2)The relationship between equity incentive and technological innovation investment is non-linear.When the proportion of senior managers' shares is less than a certain extreme value,equity incentive can play a positive role in technological innovation investment.When the proportion of executive shareholding is larger than this extreme value,trench defense effect begins to dominate.At this time,to continue to increase the proportion of senior managers' shareholding will not only play a role in promoting technological innovation investment,but also curb the enthusiasm of enterprises for independent innovation activities.(3)There is a significant positive correlation between on-the-job consumption incentive and technological innovation investment.On-the-job consumption incentive is one of the importantimplicit incentive ways in executive incentive.It can make up for the goal of owners and managers,so that executives can work hard to improve the performance level of enterprises,so it can play a good incentive effect on technological innovation investment.The results show that enterprises should establish a reasonable and effective incentive system for executives,increase investment in technological innovation and enhance their competitiveness.Enterprises should also pay attention to the combination of explicit incentive and implicit incentive.At the same time,they should reasonably control the proportion of senior managers,constantly improve and optimize the incentive mechanism for senior managers,which is very important for the future development of enterprises and the gradual realization of innovation-driven development strategy.