Research On The Influence Of Executive Incentives On The Value Of Manufacturing Enterprises

In modern corporate governance,the agency problem is particularly prominent.As a product of institutional innovation,executive incentives are an important part of the internal governance of enterprises and an important measure to solve agency problems.In modern society,innovation has become a key force in leading economic development,and plays an important role in the improvement of long-term competitiveness of enterprises.However,many enterprises in China have insufficient investment in research and development.Therefore,this paper takes R&D investment as the entry point to study the impact of executive incentives on the value of manufacturing companies.Based on innovation theory,principal-agent theory,incentive theory and Upper Echelons Theory,this paper analyzes the influence and path of executive incentives on the value of manufacturing companies,and believes that executive incentives can influence enterprise value through the R&D investment.So this paper introduces the R&D investment as the regulation variable.The R&D decision of the enterprise is the strategic choice made by the executives according to various conditions inside and outside the enterprise.The personal characteristics of the executives are different,and the judgments and choices made are different.Therefore,the executive characteristics are selected as the adjustment variables.Then this paper constructs a relationship model between executive incentives,executive characteristics,R&D investment,and corporate value.Using the data of China's A-share manufacturing listed companies from 2015 to 2017,the empirical research shows that there is a significant positive correlation between both the executive equity incentives and the compensation incentives and corporate value,and R&D investment plays a partial intermediary role between them.The age of senior executives has no regulatory effect on executive equity incentives and R&D investment.The education level and term of office of the managers have a negative adjustment effect between the two.Managers' age,education level,and term of office all have a positive adjustment between executive compensation incentives and R&D investment.Finally,suggestions for improving corporate value and enhancing enterprise innovation are proposed based on the research results.