Empirical Research On The Impact Of Technological Executive Compensation On Enterprise Innovation Investment

With the continuous improvement and improvement of China's economic system,China is still at a critical stage of socialist economic development,and its economic benefits are relatively low.Domestic enterprises are still in a weak position in the world market competition,especially their products lack international competitiveness.A large part of the reason is that the domestic enterprises lack the ability to innovate and cannot form core competitiveness.Insufficient investment in innovation,and the inability to continue innovation research and development have a greater relationship with the lack of innovation in enterprises.Because corporate innovation often has high risks and delayed returns,maintaining a continuous investment in innovation is the key to ensuring that innovation proceeds smoothly and that the company does not bring benefits.Therefore,what factors affect the innovation investment of enterprises has become an important topic of research today.There are many factors that affect China's innovation investment.Inside the company,including executive compensation,financing constraints,financial conditions,enterprise size,etc.,outside the company,including market structure,industry characteristics,and institutional factors,can more or less affect corporate innovation investment.Among them,as executives directly involved in the company's decisionmaking,to a large extent directly determine the investment of corporate innovation.Remuneration is a direct factor that motivates executives to actively promote the development of the enterprise.The professional background of executives also determines that executives can bring invisible resources and related technical support to the company.Based on this,this article attempts to explore the effect of the salary of executives with a technical background on corporate innovation investment.This paper first combines the literature and existing theories to analyze the relationship between the two.Then a total of 695 listed manufacturing companies are selected as samples,and build multiple regression model.This paper empirically tests the impact of technical executive compensation on corporate innovation investment.The results found that technical executive compensation and enterprise innovation investment are positively related,that is,the higher the technical executive compensation,the more it can promote the increase of enterprise innovation investment.Finally,based on the conclusions obtained from the research,this article believes that Chinese enterprises should establish an effective compensation contract system to stimulate the development of innovation and attach importance to the cultivation of innovative talents,and put forward corresponding policy recommendations.