Executive Compensation,Market Competion Environment And Enterprise Technology Innovation

As an important national development strategy,scientific and technological innovation is one of the effective ways to promote the sustained growth of our economy and adjust the economic structure.In order to comply with the social development trend,enterprises must adhere to the road of innovation with core competitiveness to achieve long-term sustainable development.,And corporate executives are the leaders in making innovative decisions and investing in innovative activities.Therefore,mobilizing senior managers to actively participate in the innovation activities of the enterprise is of great significance to maintain the vitality of the enterprise and obtain the competitive advantage of leading similar enterprises.Human capital theory and management rights theory show that corporate executives are the intangible wealth of the company,and give full play to the management functions of the executives.Mobilizing the enthusiasm and enthusiasm of the executives for innovation can lead to the improvement of technological innovation capabilities.It is an important part of carrying out enterprise technology innovation activities and accomplishing innovation goals.Tournament theory shows that executive compensation incentives are one of the most effective incentive methods,and executive-employee compensation gaps and executive compensation stickiness are two indispensable factors that affect the effectiveness of executive compensation incentives.Therefore,it is of practical significance to study whether executive compensation can effectively promote enterprise technological innovation.In addition,all enterprises are in the natural law of the survival of the fittest.The "invisible hand" of the market,while providing information and resources,also puts the company in different levels of competition.The market competition environment is an external governance factor for the company.Whether the correlation between executive compensation and corporate technology innovation will be strengthened is worth further investigation.Based on the above analysis,this article mainly raises two questions:(1)What impact does executive compensation have on corporate technological innovation?(2)Is there a difference in the impact of executive compensation on corporate technology innovation in different market competition environments? That is,the greater the market competition pressure,the stronger the impact of executive-employee compensation gap and executive compensation stickiness on corporate technological innovation? Finally,based on the theoretical analysis,an empirical study is conducted on the relationship between executive compensation,market competition environment and corporate technological innovation,with a view to providing reference for future research in related fields and the establishment of corporate compensation systems.After in-depth research of relevant literature,this paper proposes theoretical hypotheses based on tournament theory,contestable market theory,and innovation theory.Taking into account the lag of the impact of executive compensation on corporate technology innovation activities,all A's from 2010 to 2017 are selected.The regression analysis of the data of listed companies is conducted.The empirical results show that: First,the larger the gap between the executive-employee compensation of an enterprise,the more conducive to the technological innovation activities of the enterprise.The two have a positive and significant relationship.Second,there is a significant positive correlation coefficient between the stickiness of executive compensation and the technological innovation of enterprises,indicating that the greater the stickiness of executive compensation,the more it can promote technological innovation in enterprises.Therefore,from the perspective of these two aspects,executive compensation is to promote technological innovation in enterprises.Third,the market competition environment has strengthened the positive relationship between executive compensation and corporate technology innovation.That is,the greater the pressure on the market competition environment,the more the executive-employee pay gap and the stickiness of executive compensation promote corporate technology innovation.Significantly.In the end,the paper uses substituting variables to simultaneously perform property grouping tests and endogenous analysis to ensure the robustness of the research conclusions.The grouping results further show that the significant relationship between executive compensation,market competition environment,and enterprise technology innovation is in the sample of non-state-owned enterprises.More prominent than the sample of state-owned enterprises.This article explores the impact of executive compensation on corporate technology innovation from the perspective of executive-employee pay gaps and stickiness of executive compensation.At the same time,it considers the external market competition environment and analyzes the impact on corporate technological innovation from internal and external governance factors,Broadened the perspective of research in related fields,and also provided theoretical support for companies to formulate executive compensation mechanisms and innovation strategies suitable for themselves and the market competition environment.