Executive Incentives,Risk-Taking And Innovation Investment

In the face of complex economic environment and fierce market competition,innovation is an important strategy to achieve high-quality development of a country’s social economy.As an important carrier to achieve innovative development,the importance of enterprises has become increasingly prominent.Senior executives are important decision makers of enterprise innovation activities and have important influence on the development of enterprise innovation.Therefore,under the background of global economy,it is of great significance to study the impact of executive incentives on enterprise innovation investment.In order to explore the internal relationship between different executive incentive mechanisms and enterprise innovation investment,this paper uses literature research method,theoretical analysis method and empirical research method as the main research methods,and summarizes domestic and foreign research literature.On the basis of relevant theories,this paper proposes the research hypothesis and builds an empirical model,taking China’s A-share listed enterprises as the research object.The data from 2010 to 2021 are selected as research samples,and STATA software is used for empirical research.Executive incentives are subdivided into explicit incentives and implicit incentives to study the influence of different executive incentive mechanisms on enterprise innovation investment,the influence of different executive incentive mechanisms on risk-taking,and whether risk-taking plays an intermediary role in the relationship between them.The heterogeneity analysis is carried out based on the property right nature and industry nature.The results show that:(1)Executive compensation incentive,executive equity incentive and executive promotion incentive have promoting effects on enterprise innovation investment respectively;(2)Executive compensation incentive,executive equity incentive and executive promotion incentive respectively promote risk-taking;(3)Risk taking plays a partial intermediary role in the three functional paths of executive compensation incentive,executive equity incentive,executive promotion incentive and enterprise innovation investment;(4)In comparison,executive compensation incentive and executive promotion incentive play a greater role in promoting innovation investment in state-owned enterprises and high-tech enterprises respectively,while executive equity incentive plays a greater role in promoting innovation investment in non-state-owned enterprises and high-tech enterprises.Based on the empirical research results,this paper puts forward relevant policy suggestions: first,pay attention to setting up a diversified incentive mechanism for senior executives,and make full use of the different positive roles of explicit and implicit incentive mechanisms to develop incentive schemes.Second,we should pay attention to the promotion of risk bearing capacity,and pay attention to the boosting effect of incentive mechanism on risk bearing degree.Third,pay attention to the marginal effect of incentive mechanism on the promotion effect of innovation investment,and improve the promotion effect of incentive mechanism on enterprise innovation investment in a targeted way.This paper not only enriches the relevant theoretical studies on the influence of different executive incentive mechanisms on enterprise innovation investment and the mediating influence path,but also refines the differences in the influence of the relationship between executive incentive and enterprise innovation investment of different nativity,so as to provide reference for listed enterprises to improve their innovation level when the current economic environment is uncertain.