The Impact Of Economic Policy Uncertainty And Executive Incentives On Corporate R&D Investment

In the new era of the country's vigorous promotion of innovation,innovation has also become the key to the success of enterprises in the national and global competition.Innovation is inseparable from R&D.As a special investment activity that is different from ordinary fixed asset investment,corporate R&D investment is of strategic importance for the sustainable development of enterprises.The uncertainty of economic policies in the process of economic transformation and development has also become a non-negligible factor affecting corporate R&D innovation.In the existing research on the influencing factors of R&D investment,most scholars have directly considered the internal characteristics of enterprises,and relatively few analysis of the special economic forms and policies of enterprises.This article is based on the uncertainty theory,growth option theory,and corporate capability theory.This article from the perspective of the impact of uncertainty in external economic policies on the core competitiveness and competitive advantage of enterprises,does the detailed analysis research on the opportunities and challenges brought by the uncertainty of economic policies to enterprises.And further combined with the principal-agent theory,from the perspective of executive incentives,this paper analyzes the influence of executive incentives as an internal governance feature on the relationship between economic policy fluctuations and corporate R&D investment.It is hoped that the research in this article will open up new perspectives for existing research and provide useful references for the long-term sustainable development of enterprises from the external economic policy environment and executive incentives.This article combines literature research and empirical research to explore the specific impact of economic policy uncertainty on corporate R&D investment,and analyzes the impact of executive compensation and executive holdings on the relationship between the two.Firstly,in terms of literature analysis,it reviewed the uncertainty theory,growth option theory,enterprise capability theory,and principal-agent theory.Secondly,it summarizes the related research on the uncertainty of economic policy and the related research on the influencing factors of corporate R&D investment.This article reviews relevant research on economic policy uncertainty and R&D innovation,executive incentives and R&D innovation,and proposes three basic assumptions based on the research theme of this article.Considering the differences in corporate ownership,this paper proposes assumptions about the differences in the regulatory role of executive incentives in state-owned and non-state-owned enterprises.Finally,based on the relevant data of Chinese A-share listed companies from 2008 to 2018,a multiple regression model including cross terms was constructed to test the above four hypotheses.The reliability of the research results was ensured by the stability test.Through a series of analysis and verification,the following conclusions were reached:(1)Economic policy uncertainty is positively related to corporate R&D investment.That is,the increase in economic policy uncertainty will prompt companies to increase R&D investment in order to seize market opportunities and obtain long-term benefits.(2)From the perspective of corporate internal governance,the judgment of senior executives on external economic policies and the choice of corporate R&D innovation will affect the relationship between economic policy uncertainty and corporate R&D investment.The study found that executive compensation incentives and executive share-holding played a positive regulating role in the relationship between economic policy uncertainty and corporate R&D investment.(3)In state-owned enterprises and non-state-owned enterprises,the influence of executive incentives on the relationship between the two is different.Compared with state-owned enterprises,the regulatory effect of non-state-owned enterprise executive share-holding is more obvious.In terms of salary incentives,there is no significant difference between state-owned enterprises and non-state-owned enterprises.