Exercise Restriction,R&D Investment And Innovation Performance

In the internet age,enterprises are facing the great challenge of rapid changes in industrial technology and increasingly fierce market competition.They must actively improve their innovation level and form their core competitiveness.Meanwhile,the government also requires enterprises to give full play to their main role in innovation under the guidance of market.Due to the information asymmetry and interest conflict between shareholders and executives,there are agency problems between them,which leads to the fact that executives’ promotion of innovation in enterprise management does not fully meet the expectations of shareholders.How to encourage executives to further support enterprise innovation activities has become a problem for shareholders to think about.The introduction of equity incentive to executives for a longer-term incentive has become the choice of many enterprises.In this way,the interests of executives are closer to the overall interests of shareholders,which makes executives pay more attention to the long-term performance of the enterprise,and are more willing to take more risks for the future value of the enterprise,thus promoting the innovation of the enterprise.However,in the existing literature,the research on the impact of equity incentive on corporate performance is relatively rich,while the research on innovation performance by equity incentive is relatively few,and lack of systematic research.It is necessary to make a systematic study on how to achieve the innovation incentive effect of executive equity incentive,the impact of equity incentive contract design on the effect,and the impact of equity checks and balances on the innovation driving mechanism.Combining principal-agent theory,management risk aversion hypothesis,risk reward trade-off theory,control theory and related literature,based on the node of vesting day,this paper divides exercise restriction into two dimensions:short-term and long-term.From the perspective of risk-taking,this paper studies the specific impact of exercise restriction on enterprise innovation and the intermediary role of R&D investment in it,and then studies the relationship between equity check and balance Regulation.In this paper,686 A-share listed companies that implemented equity incentive in 2012-2016 are selected as samples to obtain relevant data,taking into account the lag between innovation input and output,and obtain the R&D input data in 2013-2017 and patent data in 2014-2018,and then aggregate the data for empirical research.The results show that:the short-term constraints have a significant negative correlation with innovation performance,and the long-term constraints have a significant positive correlation with innovation performance;R&D investment has a mediating efect between the two types of exercise restrictions and corporate innovation performance;the more equity checks and balances,the less sensitive executives are to short-term constraints,and the more sensitive they are to long-term constraints.This paper discusses the influence mechanism of exercise restriction,R&D investment and innovation performance,and the regulatory mechanism of equity balance in this process.It not only summarizes the existing research in a comprehensive and systematic way,but also goes deep into the level of exercise restriction.It discusses how the impact of different exercise restrictions on enterprise innovation is affected by equity balance,so as to combine the equity structure for enterprises to provides a reference for enterprises to set the exercise restrictions of equity incentive,give full play to the incentive effect and improve innovation performance.