A Study On The Relationship Among The Executive Incentives,R&D Investment And Company Performance

In the era of knowledge economy,science and technology is developing and progressing constantly.Enterprise competition is getting more and more intense.If you want to gain advantages in the fierce market competition and seek long-term survival and development,enterprises need to continuously carry out technological innovation.Technological innovation is mainly achieved through R&D activities.However,R&D activities require a large amount of capital,and they have characteristics of long-term return and high-risk.Thus business operators are often reluctant to invest too much in this field for their own interests.Therefore,companies need to take appropriate incentives to align the operators with the owner's goals.According to Catalogue of High-tech Fields Supported by the State,the software and information technology service industry is currently the key industry for R&D investment in China.As a knowledge-intensive high-tech industry,technological innovation is the core competitiveness of the industry.In recent years,software and information technology service industry has developed rapidly,but it is still not mature enough for high-end core technologies.The market of this industry is highly competitive,and its products upgrading is faster than other industries.Therefore,if you want to achieve good development and not be eliminated by the market,companies must continuously invest in research and development to achieve technology and product updates.Then,how to improve innovation abilities of enterprises and realize the sustainable development of enterprises is a key issue that needs to be solved urgently in the development of software and information technology in China.Based on the above background,this paper takes 100 listed companies that disclose the R&D investment as well as the shareholding ratio of executives in the software and information technology service enterprises listed in China's A-share market as the research sample.Also taking 2014-2017 as the research interval,the relationship between corporate performance,the relationship between executive incentives and R&D investment,the relationship between R&D investment and corporate performance are studied.On this basis,research on whether executive incentives can regulate the relationship between R&D investment and corporate performance is conducted.The results show that:(1)The short-term salary level of executives is positively correlated with corporate performance,but the correlation is not significant;while the long-term shareholding ratio of executives is significantly positively correlated with corporate performance.(2)The short-term salary incentives of senior executives are significantly positively correlated with the intensity of R&D investment,while the long-term shareholding ratio of executives is negatively correlated with the intensity of R&D investment,and the correlation is not significant.(3)R&D investment intensity and corporate performance are significantly negative relevant.(4)The short-term salary incentives of senior executives and the long-term shareholding ratio of senior executives have no adjustment effect on the relationship between R&D investment and corporate performance.Finally,based on the results of empirical research,this paper proposes measures to improve the incentive mechanism for corporate executives,to strengthen R&D investment,and to improve policy recommendations for enterprises.Also it points out the limitations of the study and the prospects for future research.