Equity Characteristics,Equity Incentive And R&D Expenditure

As the economy enters a new normal,economic growth is in a critical period from factor-driven to innovation-driven.Innovation has become a source of strength for companies to enhance their competitiveness,and R&D activities are an important part of enhancing the technological innovation capability of companies.In recent years,the R&D intensity of companies has been increasing,but there are still big differences compared with developed countries,such as Israel and Korea.It is urgent to promote companies to increase R&D intensity.As the makers of company R&D decisions,management may evade risky R&D activities due to the existence of principal-agent problems,resulting in insufficient R&D.As a long-term incentive system,equity incentive provides a new way to solve the problem of insufficient company R&D.However,most of the previous studies have used incentive mechanism as a whole research,and there are relatively few articles on the incentive elements of incentive programs.Do the same.As an important contract element of the incentive plan,whether the equity incentive intensity and the incentive model affect the R&D expenditure,and how it affects the R&D expenditure is worthy of further discussion.In addition,corporate equity characteristics as one of the factors to measure the effectiveness of governance may have an impact on the effect of equ ity incentive.Therefore,this paper further incorporates the equity characteristics into the research framework to explore the effect of equity characteristics on the impact of equity incentive on R&D expenditure.This paper takes high-tech listed companies relying on innovation and development as the research object,analyzes the current situation of equity characteristics,equity incentive and R&D expenditure,and finds that the equity concentration of high-tech listed companies is generally high,and non-state-owned companies account for a large proportion and are more inclined to implement equity incentive.In the implementation of the equity incentive contract,the incentive intensity is generally low,and the incentive model is mainly restricted stock s.In addition,although the company R&D expenditure has increased year by year in the past five years,it is still insufficient compared with some developed countries.Based on the analysis of current situation and based on information asymmetry theory,principal-agent theory,incentive theory and management power theory,this paper further explores how equity incentive affect R&D expenditure and the effect of equity characteristics on equity incentive affecting R&D expenditure,providing empirical researc h for the following theoretical basis.In the empirical part,the data of high-tech listed companies implementing equity incentives for 2013-2017 were selected and studied by multiple regression methods.The empirical results show that the high-tech listed companies have a bad effect on equity incentive,and the equity incentive intensity significantly negatively affects R&D expenditure.The equity incentive model will significantly affect R&D expenditure.The incentive effect of stock options on R&D expenditure is better than that of restricted stocks.Equity concentration weakens the negative impact of equity incentive intensity on R&D expenditure.Equity concentration weakens the impact of equity incentive model on R&D expenditure.Compared with state-owned companies,the intensity of equity incentive of non-state-owned companies has a better effect on R&D expenditure.Compared with state-owned companies,the impact of equity incentive model on R&D expenditure in non-state-owned companies is more significant.Based on the above analysis,this paper proposes suggestions from three aspects of optimizing the design of equity incentive schemes,reasonable allocation of equity concentration,and sound the manager market,in order to promote the incentive effect of equity incentive,encourage management to increase R&D expenditure and enhance company competitiveness.Realize the long-term development of the company.