Research On Executive Incentives,institutional Investment Participation And Enterprise Innovation Performance

As an important subject of technological innovation,the improvement of private enterprises' innovation performance plays an irreplaceable role in promoting the progress of science and technology in China.In modern enterprises under the separation of ownership and control,executives with the power of resource allocation are considered as the main organizers,decision makers,promoters and executors of enterprise innovation activities.Therefore,how to motivate executives reasonably and effectively is the key to improve the innovation performance.However,there is still much debate about whether executive incentives can lead to effective improvement of enterprises innovation performance.At the same time,institutional investors,as important stakeholders of enterprises,have scale and professional advantages,and are likely to provide effective innovation supervision for enterprises.However,few scholars have introduced institutional investment participation between executive incentives and innovation performance.So is the executive incentive mechanism conducive to the improvement of enterprise innovation performance? Is institutional investment participation beneficial to the role of executive incentives in promoting corporate innovation performance? Will heterogeneous institutional investor participation have a differential impact on the innovative effects of executive incentives?Based on the above background,this study takes the variables of executive incentive,institutional investment participation and innovation performance as the research object,constructs the theoretical framework and research hypothesis on the basis of systematic combing of relevant literature,and selects 3222 sets of observation data of 537 listed A-share private manufacturing companies in China from 2012 to 2017 as the research sample.Through empirical analysis,this paper discusses the relationship between executive incentive,institutional investment participation and innovation performance.In order to make the empirical analysis more in-depth,this study measures the main indicators of enterprise innovation performance from two aspects of innovation economic output and innovation technology output,and divides institutional investors into pressure-resistant and pressuresensitive.The main conclusions are as follows:(1)executive compensation incentive has a significant positive impact on enterprise innovation performance;(2)executive equity incentive has a significant positive impact on enterprise innovation performance;(3)institutional investment participation significantly strengthens the role of executive equity incentive in promoting enterprise innovation performance,but there is no significant moderating effect in the relationship between executive compensation incentive and enterprise innovation performance;(4)Pressureresistant institutional investment participation strengthens the positive relationship between executive compensation incentive and enterprise innovation economic output,while pressure-sensitive institutional investment participation weakens the relationship.There is no significant moderating effect on the relationship between executive compensation and innovation technology output,no matter pressure resistant nor pressure-sensitive institutional investment participation;(5)In terms of innovation technology output and innovation economic output,investment participation of pressure-resistant institutions has a significant positive impact on innovation incentive effect of executive equity incentive,while investment participation of pressure-sensitive institutions has no significant moderating effect on innovation performance of executive equity incentive.In addition,based on the above conclusions and findings,this study summarizes the research implications and points out the lack of research and possible future research directions.The innovation of this research mainly includes:(1)refining the executive incentive,measuring the enterprise innovation performance in various aspects,and enriching the research on the relationship between executive incentive and enterprise innovation performance;(2)introducing the moderating variable of institutional investment participation to expand the research on the role of institutional investors in corporate governance;(3)give full consideration to the timeliness of different incentive methods and the hysteresis of the impact on the innovation performance of enterprises,which is more in line with the reality of the situation.