An Empirical Study On The Impact Of CEO Salary Incentives On Enterprise Technological Innovation

The ability of technological innovation determines the core competitiveness and sustainable development capability of an enterprise.Due to the separation of ownership and management rights,agents(managers)are generally risk-averse and short-sighted.The high-risk characteristics of technological innovation further exacerbate this risk aversion and short-sight of agents(managers),leading to technological innovation.insufficient.Therefore,how to effectively encourage managers to receive widespread attention from the academic and practical circles.However,the current domestic research is more about how the incentives for the executive team affect the technological innovation of the enterprise and ignore the role of the CEO.In addition,previous research focused on the impact of a single incentive on enterprise technology innovation,ignoring how the combination of different incentives affects technological innovation.Therefore,based on the innovation theory and principal-agent theory,this paper probes into the single incentive effect of CEO's monetary compensation incentive,shareholding incentive and equity incentive plan on enterprise technology innovation,and the interaction between three incentives and three-dimensional interaction.The impact of innovation.This research not only further expands the principal-agent theory,but also provides a useful reference for the design of the executive incentive mechanism for the listed companies in China.This paper uses a combination of theoretical analysis and empirical analysis to examine the impact of CEO monetary compensation incentives,shareholding incentives and equity incentive plans,and the interaction between the three on corporate technological innovation.Firstly,it analyzes the single incentive effect of CEO monetary compensation incentive,shareholding incentive and equity incentive plan on enterprise technology innovation,and puts forward three hypotheses.Then it further analyzes the effects of the two-way interaction term and the three-dimensional interaction term on the technological innovation of the three incentives,and proposes three sub-hypotheses.Based on the initial research sample of China's Shanghai and Shenzhen A-share listed companies between 2009 and 2017,a multivariate regression model was constructed to empirically test the above research hypotheses.The study found that:(1)CEO monetary compensation incentives,shareholding incentives and equity incentive plans have significant positive effects on corporate technology innovation;(2)CEO monetary compensation incentives and equity incentives(equity incentive plans or shareholdings)Technological innovation has synergistic effects;(3)CEO shareholding incentives and equity incentive plans have a substitution effect on the role of technological innovation;(4)Three-dimensional incentives for CEO monetary compensation incentives,shareholding incentives and equity incentive plans The role of interaction in promoting technological innovation in enterprises is not obvious.This paper uses three methods to test the robustness,namely changing the variable measurement index?testing the sub-samples and using panel data regression,and using the simultaneous equation method and propensity score matching method to solve the endogeneity problem.The results show that the research conclusion is robust.