The Correlation Of Executives Equity Incentives,Corporate Performance And R&D Investment

Under the background of China’s economic development entering a new normal,China’s economy is shifting from high-speed growth to medium-high-speed growth.The mode of economic development is shifting from scale-extensive-type growth to quality-efficiency-type intensive growth,and the economic structure is expanding from incremental capacity.Turning to the adjustment of stocks and the adjustment of the depth of coexistence,the economic development momentum is shifting from the traditional growth point to the new growth point.Innovation is the basis for the transformation of the industrial structure,the development and development mode,and the important factor for the economy to achieve the second leap.In his government work report,Premier Li Keqiang also stressed that"innovation is the first driving force for development."In the context of today’s supply-side reforms,companies must use innovation to drive total factor productivity,increase R&D investment,and enhance their market competitiveness.In the enterprise,executives play an important role in the decision-making of R&D investment.R&D projects have large investment,long recovery time,slow effect,and uncertain results.They belong to high-risk projects of enterprises,and executives are not willing to undertake such huge Risk,in general,will avoid research and development behavior as much as possible.Therefore,listed companies in China generally have problems of insufficient innovation power and low enthusiasm.This paper takes GEM listed companies as the research object,and intends to explore the relationship between executive equity incentives,corporate performance level and R&D expenditure.This paper mainly uses the combination of normative research and empirical research,and uses logical induction and reasoning in theoretical research.The method is based on principal-agent theory,executive compensation theory,corporate performance evaluation theory,research and development expenditure,and accounting treatment theory.It combines the influence of domestic and foreign scholars on the relationship between executive equity incentives and R&D expenditures and corporate performance on R&D expenditure.Relevant literature,in the empirical research,first,the construction of the research and development expenditure as the dependent variable,the executive equity incentive as the independent variable,and the regression model of the control variable,the hypothesis H1 is tested.Second,the company’s previous performance level was added to the first model,and the hypothesis H₂ was tested.Thirdly,the pre-performance level of the enterprise is taken as the adjustment variable,and the interaction term between the performance level and the executive equity incentive is constructed.The multi-linear regression model is added to the hypothesis H3 test.The research in this paper provides empirical evidence for the establishment of a sound high-growth equity incentive mechanism for China’s GEM listed companies to improve the company’s innovation level,and has certain reference significance for the problems existing in corporate governance.