Research On The Relationship Of Executive Motivation,Dual Innovation And Corporate Financial Performance

With the rapid development of science and technology and the increasingly fierce international competition,scientific and technological innovation has gradually become one of the important strategic decisions which is related to the survival of enterprises.Also,science and technology innovation is the foundation of enterprise survival and development.The 5 G era has accelerated the speed of economic development,resulting in some enterprises are gradually eliminated by the market because product or service differentiation is not obvious then facing the risk of bankruptcy.And these enterprises also begin to realize the importance of innovation to the survival and development,and once again highlight the importance of innovation.However,the lack of innovation investment has become a key factor restricting the improvement of China's scientific and technological competitiveness.As the backbone of innovation investment,enterprises can fully realize the important role of innovation in the financial performance of enterprises by studying the relationship between innovation and enterprise financial performance.As important decision-makers of enterprise strategy making and fund scheduling,it is very important for executives to study their relationship between innovation and financial performance.Based on the background of innovation-driven development,this paper selects the relevant continuous data of A listed companies in Shanghai and Shenzhen from 2015 to 2018 as the research sample using the analysis of principal-agent theory,incentive theory,human capital theory,innovation theory and Interest Convergence Hypothesis.And the study takes descriptive statistics,correlation analysis,multiple collinearity test,multivariate regression analysis and robustness test to verify the proposed hypothesis.The empirical results show that both executive incentive and dual innovation have significant positive effect on corporate financial performance level.The influence of exploratory innovation investment on corporate financial performance has a lag effect,and the lag effect gradually weakens with the passage of time until it disappears completely when it lags three periods.While the impact of development innovation investment on the financial performance of enterprises does not have a lag effect.The executive incentive has a significant positive effect on dual innovation,and the implementation of appropriate compensation incentive and equity incentive is helpful to increase corporate innovationinvestment.Both the different dimensions of dual innovation explore innovation investment and development innovation investment play a part of intermediary transmission effect between executive incentive and corporate financial performance.Finally,based on the research conclusions of the paper,four countermeasures and suggestions are put forward for enterprises to promote the increase of financial performance of enterprises and achieve their sustainable development.Attach importance to the training and introduction of R&D personnel,enhance the ability of scientific research and innovation.Pay attention to the combination of long-term and short-term incentive methods,improve the executive incentive mechanism.Change executive ideology,raise its innovation consciousness.Focus on the lag influence of exploring innovation investment on enterprise financial performance etc.