Research On The Relationship Between R&D Investment,Executive Incentive And Enterprise Performance

Under the background of the big data era of intelligent and comprehensive technology development,the information technology industry is developing rapidly at an unprecedented speed.At the same time,the information technology industry as the focus of China’s government R&D investment activities,its innovation and research ability and achievement transformation efficiency has attracted much attention.However,under the modern enterprise system,the owners and the managers often have information asymmetry due to the principal-agent problem and may lead to conflicts of interest.Due to the high risk and uncertainty of enterprises’ innovation and research and development activities,managers tend to choose the attitude of risk avoidance in order to protect their own interests,which to a certain extent will have a negative impact on the interests of shareholders and the sustainable development of the enterprise in the future.The executive incentive policy can be started from the perspectives of salary and equity.On the one hand,it meets the pursuit of wealth goals,and on the other hand,it can transform the senior executives into part of the equity of the enterprise.A reasonable executive incentive mechanism can not only effectively alleviate the principal-agent problem caused by the separation of the two powers,stimulate the enthusiasm of senior executives,but also reasonably allocate internal resources and improve the efficiency of the achievement transformation of R&D activities.Therefore,this paper conducts research on R&D investment,executive incentive and enterprise performance,in order to enrich the existing research results and provide reference for improving enterprise performance.Based on this,this paper to literature research,multiple regression analysis and regulation effect test as the main research method,in the small and medium-sized board listed information technology industry enterprises as a research object,selected in 2010-2021 in the small and medium-sized board listed 203 information technology enterprise financial data,the research and development investment,study the relationship between executive incentive and enterprise performance.First of all,by collecting and summarizing relevant literature at home and abroad,combined with principal-agent theory,incentive theory,technological innovation theory and human capital theory,the concept of R&D investment,enterprise performance,executive and executive incentive is defined,and the research hypothesis is put forward.Secondly,the selected sample characteristics and data sources are introduced and analyzed,and the measurement index of each variable is determined,and then the model needed to be established in this paper is formulated.Thirdly,the study hypothesis is verified by conducting multiple regression analysis,lag effect test and regulatory effect test.Finally,the replacement of explained variables,endogeneity test and group regression is adopted to further verify the conclusion.The empirical analysis of this paper are as follows: First,R&D investment will have a negative impact on the current performance of enterprises.At the same time,there will be a lag effect on the impact of R&D investment on enterprise performance.Second,both executive compensation incentive and equity incentive will promote the improvement of enterprise performance level.Third,executive compensation incentive and equity incentive will play a positive role between R&D investment and corporate performance.But this regulation will be affected by the nature of the enterprise.In state-owned enterprises,executive compensation incentive plays a positive role in the relationship between R&D investment and enterprise performance,while equity incentive plays a negative adjustment role between the two.In non-state-owned enterprises,equity incentive has a more significant positive adjustment effect on the relationship between R&D investment and enterprise performance,while salary incentive plays a negative adjustment role.Finally,based on the empirical research conclusions of this paper,targeted suggestions are put forward,so as to provide useful reference for building a scientific and reasonable executive incentive mechanism for listed companies in the information technology industry of small and medium board.Based on the existing research literature,it is found that most scholars carry out analysis and research between R&D investment and corporate performance from the perspectives of equity balance,internal control,corporate nature and management ability,and most of the selected research samples are for Shanghai-Shenzhen A-share listed companies.In this paper,considering the information technology industry technology innovation ability is stronger,have certain representative,so will be listed on the small and medium-sized board information technology industry company as a research object,and the executive incentive as a variable divided into equity incentive,compensation incentive two dimensions to analyze the r & d investment and adjustment effect of enterprise performance.This is of certain significance for optimizing the governance structure of listed companies in the information technology industry and improving their innovation ability.