Impact Of Executive Incentives,Research And Development Investments On The Growth Of Enterprises

Enterprise growth is the enterprise value growth realized by optimizing the allocation of factors of production and adjusting the relationship between input and output under the continuous operation.Enterprise growth is an important index to measure a company's development ability,can dynamically show a company from the founding stage to the mature stage of the development process,the enterprise has good growth,to promote the sustainable and healthy development of enterprises,maximize the value of enterprises and maintain a stable growth of social and economic status plays an important role.With the development of science and technology,research and development innovation has become the source of sustained economic growth,enterprises in order to achieve long-term development,must be research and development innovation.Research and development innovation is the lifeblood of the pharmaceutical manufacturing industry,pharmaceutical manufacturing listed companies must increase investment in research and development activities,improve their own competitiveness,produce drugs with independent intellectual property rights,improve economic efficiency,benefit society.The main body of enterprise research and development investment decision-making is the executive of the enterprise,with the separation of the management right and management right of modern enterprise,the executive severing gradually become the actual controller of the enterprise.Executives directly influence the development of research and development investment activities,in the absence of any executive incentives,even if the success of research and development can bring huge benefits to the enterprise,but because of the high uncertainty,high risk and long investment payback characteristics of the research and development investment activities themselves,executives do not have the incentive to invest in research and development,so it is necessary for enterprises to establish executive incentive mechanisms.Implement short-term executive compensation incentives and long-term equity incentives to promote executive investment in research and development activities,thereby improving the growth of enterprises.This paper mainly studies the relationship between executive incentive,research and development investment and enterprise growth of listed companies in pharmaceutical manufacturing.On the basis of reading a large number of relevant literature at home and abroad,580 observations of listed companies in the pharmaceutical manufacturing industry were selected as research samples,and the relationship between executive incentives and research and development investment sons and cities was analyzed empirically.The results show that both executive equity incentive and executive compensation incentive can improve the growth of enterprises,enterprises can strengthen the investment of research and development,and executive equity incentive and executive compensation incentive can have a positive effect on research and development investment.Executive equity incentive and executive compensation incentive can positively regulate the relationship between research and development investment and enterprise growth.Based on these findings,executive incentive is the adjustment variable of research and development investment and enterprise growth,that is,enterprises can use executive incentive to promote research and development investment to promote the growth of enterprises play a greater role.This paper puts forward the relevant suggestions from the perspective of the government and the enterprises themselves,from the internal consideration,how to better play the role of executive incentive adjustment and increase research and development investment activities is the need for enterprises to pay attention to,from the outside,the government should strengthen supervision and improve the relevant laws and regulations.