Research On The Influence Of Executive Motivation On Enterprise

China’s economy is in a new stage of transformation and development,and the realization of economic quality and efficiency,sustainable and healthy development can not be achieved without the creation of new-driven development strategy.The 19th National Congress of the Communist Party of China regards innovation as a basic state policy,and establishes the core position of innovation in leading the high-quality development of China’s economy.Senior management,as the key person of enterprise management decision,plays a vital role in enterprise innovation.However,the uncertainty of innovation itself and the existence of agency costs will make executives choose a more robust scheme to avoid the expected loss of innovation strategy.Therefore,it is particularly important to establish a reasonable incentive mechanism to stimulate executives’ willingness to innovate.At the same time,the high ladder team theory points out that the psychological characteristics of managers will also affect the strategic choice of enterprises.Managers have different levels of confidence,development expectations of future enterprises,and risk prediction,so they will make different business decisions.Based on this,this paper studies executive motivation,manager overconfidence and enterprise innovation within the same framework.Based on principal-agent theory,incentive theory,high ladder team theory,control illusion theory and innovation theory,this paper discusses the impact of executive motivation on firm innovation,and discusses the moderating effect of manager overconfidence on the relationship between executive motivation and firm innovation.Among them,executive incentive is divided into explicit incentive and implicit incentive.This paper selects the data of China’s A-share manufacturing listed companies from 2016 to 2020 as research samples,constructs the model,and uses Stata15.0 to conduct empirical test.The results show that:(1)monetary compensation incentive positively influences firm innovation.(2)Equity incentive positively affects enterprise innovation.(3)Incentive of right of control positively influences firm innovation.(4)Managers’ overconfidence will weaken the positive impact of monetary compensation incentive on firm innovation.(5)Managers’ overconfidence has no influence on the relationship between equity incentive and firm innovation.(6)Managers’ overconfidence will weaken the positive impact of control incentive on firm innovation.Finally,based on the above research conclusions,this paper takes the psychological characteristics of overconfidence of managers as the entry point and puts forward corresponding suggestions for improving incentive mechanism and stimulating innovation vitality from the perspective of enterprises.