Executive Equity Incentive,R&D Investment And Enterprise Performance

At present,the Chinese economy is in a critical period of transformation and upgrading.China is gradually abandoning the traditional high-speed growth model,and pursuing high-quality development.Innovation has increasingly become an important driving force for national development.As an important participant in the national economy,enterprises are the micro-reflection of the country’s ability to innovate.The ability of enterprises to innovation is not only the driving force for their own sustainable development,but also the key driving factor for achieving high-quality economic development.R&D investment is regarded as an inexhaustible source of innovation for enterprises,reducing production costs and improving labor efficiency and helping companies obtain excess benefits.In addition,the development of enterprises is inseparable from the participation of managers.The executives are the core factors for the survival and development of enterprises.They are responsible for the operation and management of enterprises,master the important resources of the company,and have the ability to make decisions on major strategies such as R&D and innovation.Measures play an important role in enterprise innovation and development.Then,what is the effect of executive equity incentives and can it promote corporate R&D spending? How does R&D investment improve business performance? Is there an endogenous relationship among the three variables?The answers to these questions will help deepen the micro-interpretation of innovation theory at the enterprise level,and have certain reference significance for promoting enterprise transformation and upgrading.Based on the research of existing literature,this paper theoretically analyzes the relationship among executive equity incentives,R&D investment and corporate performance according to principal-agent theory,incentive theory and innovation theory,and proposes corresponding research hypotheses.The 241 GEM listed companies were selected as research samples to establish a simultaneous equation model for empirical analysis,which verified the endogenous relations among the three variables and further explored in different industries.The results show that:(1)executive equity incentives have a significant positive relationship with corporate performance,and corporate performance also has a significant positive impact on executive equity incentives,which are mutually causal endogenous relationships;(2)executive equity Incentives significantly positively affect R&D investment,R&D investment significantly positively affects executive equity incentives,and the two are mutually causal endogenous relationships;(3)R&D investment in the current period negatively affects corporate performance,lagging R&D investment positively affect corporateperformance,while corporate performance has a significant negative impact on R&D investment,the two are mutually causal endogenous relationships;(4)there is an endogenous relationship among executive equity incentives,R&D investment and corporate performance;(5)There are differences between different industries.The endogenous relationship between the three variables in the technology-intensive industry is still established,and the R&D investment is particularly effective in promoting the performance of the enterprise.The endogenous relationship among the three in the capital-intensive industry has also been verified.The executive equity incentives for corporate performance and R&D investment The positive effect is more prominent;the relationship between the three variables in the labor-intensive industry cannot be verified,and the executive equity incentive has become a welfare arrangement.Finally,according to the research conclusions of this paper,the relevant policy recommendations are put forward from the aspects of increasing R&D innovation,formulating reasonable equity incentive policies,and determining the development strategy of enterprises.