Research On Executive Pay Gap,Board Capital And Enterprise Innovation

Innovation is an important driving force to promote national and even world economic development.If a country’s economy wants to develop rapidly,we must pay attention to innovation as an important factor.How to maintain and improve the country’s ability to innovate,to continue to strengthen our country’s Comprehensive National Power,and to achieve an irreplaceable position in global competition,said Comprehensive National Power,president of the Comprehensive National Power,it is one of the problems to be faced and solved nowadays.The Enterprise is the micro-subject in the whole innovation system,and the improvement of its innovation ability is very important,because it relates to the innovation ability of the whole industry,the region and the country,so it’s getting a lot of attention.The innovation activities of enterprises are closely related to the encouragement and support of national policies,but they are more influenced and restricted by their own internal governance mechanism.The executive pay gap is an important incentive mechanism for corporate internal governance.The economic consequences of the executive pay gap have attracted more and more attention.At present,there is little literature on the impact of the long-term pay gap on innovation.Compared with the single study on the impact of the short-term pay gap,the long-term pay gap also has a greater impact at different stages of innovation,so both need to be studied further.The board of directors is an important corporate governance mechanism,and the board of directors capital is the intangible capital that the board brings to the company? Does it interact with the executive pay gap to influence innovation,and what does it do? All these questions need to be further verified.This article combs the relevant domestic and foreign literature and summarizes the relevant research results.Starting from the connotation and measurement of the executive compensation gap,board capital and corporate innovation,this article discusses the short-term and long-term executive compensation gap,and the impact of board capital on corporate innovation In combination with the characteristics of the ownership of my country’s high-tech listed companies,an in-depth analysis is made and corresponding hypotheses are put forward.Then use empirical methods to test,and finally summarize the conclusions of the thesis based on the research results,and put forward corresponding policy recommendations,and point out the direction of further research in the future.Through research,this article mainly draws the following conclusions:(1)Regarding the executive pay gap,board capital,and innovation input: First,the executive pay gap and innovation input are positively correlated,which shows that the high-tech listed companies in my country have relatively reasonable executive pay gap design and long-term executives Both the short-term salary gap and the short-term salary gap can significantly promote innovation investment,and the study found that the long-term salary gap of executives has a greater role in promoting innovation investment than the short-term salary gap.Compared with state-owned enterprises,the short-term salary gap of non-state-owned enterprise executives has a significant positive correlation with innovation input,while the long-term salary gap of state-owned enterprise executives has a significant positive correlation with innovation input.Secondly,the professional background of human capital of the board of directors has a significant positive correlation with innovation investment.The overseas background of the board of directors will not significantly affect the innovation investment of high-tech listed companies;the social capital financial relationship of the board of directors does not have a significant impact on innovation investment,but,Interlocking directors’ investment in innovation is significantly negatively correlated.In state-owned enterprises,the human capital of the board of directors plays a positive and positive role in innovation investment;in non-state-owned enterprises,the interlocking directors of the social capital of the board of directors play a significant negative role in innovation investment.Finally,it is found that the interaction coefficient between the short-term compensation gap of executives and the professional background of the human capital of the board of directors is significantly positive,indicating that the short-term compensation gap of executives and the professional background of the human capital of the board of directors have a complementary effect on enterprise innovation investment,that is,the human capital of the board of directors.The richer the professional background,the stronger the short-term salary gap of executives in promoting corporate innovation investment;the interactive effect of the short-term compensation gap of executives and the overseas background of board human capital on corporate innovation investment is not significant.The interaction coefficient between the short-term salary gap of executives and the social capital of the board of directors is not significant.The interaction coefficients of the long-term salary gap of executives and the professional background of the board of directors ’ human capital and overseas backgrounds on corporate innovation investment are both significantly negative.This shows that the long-term compensation gap between the board’s human capital and executives has a substitution effect on corporate innovation investment,namely The richer the human capital of the board of directors,the weaker the role of the long-term executive compensation gap in promoting corporate innovation investment;the interactive effect of the long-term executive compensation gap and the social capital of the board of directors on corporate innovation investment is not significant.Among the results of state-owned and non-state-owned enterprises on the executive pay gap and board capital’s interaction effect on innovation input,only in state-owned enterprises,the interaction coefficient between the executive pay gap and the interlocking directors of the board of directors is positive and significant.Others None of the interaction coefficients are significant.This shows that in state-owned enterprises,the executive pay gap and interlocking directors have a complementary effect on innovation investment,that is,interlocking directors can enhance the promotion of innovation input by the executive compensation gap,and it is statistically significant.(2)In terms of executive pay gap,board capital and innovation output: First,the short-term executive pay gap and innovation output have a negative effect,which means that widening the executive short-term pay gap inhibits innovation output;The coefficient of salary gap and innovation output is positive,but it is not statistically significant,which shows that although the long-term salary gap of executives can promote innovation output,it does not have a significant impact.In state-owned enterprises,it is found that there is an inverted U-shaped relationship between the short-term salary gap and innovation output within the executives,and the long-term salary gap within the executives has a negative correlation with innovation output;The output does not have a significant relationship.The above results indicate that the short-term salary gap between executives in state-owned enterprises first promotes and then hinders innovation output,while the long-term salary gap inhibits innovation output.Innovation output requires team collaboration and stability.,When the salary gap is too large,it is not conducive to team collaboration and stability,so it will hinder innovation output.Secondly,the relationship between the professional background of the human capital of the board of directors and the innovation output is positive,indicating that the higher the proportion of directors with a professional background of “output-oriented functions”,the stronger the promotion of the innovation output of high-tech enterprises;the overseas background and innovation of the board The output relationship is negative,indicating that directors with overseas background have a significant inhibitory effect on the innovation output of high-tech enterprises.The social capital of the board of directors and the innovation output,neither the financial relationship nor the chain relationship are statistically significant,indicating that the social capital of the board of directors does not have a significant effect on the innovation output of high-tech enterprises.The professional output background of human capital of the board of directors in state-owned enterprises is positively correlated with innovation output,while the overseas background of directors is negatively correlated with innovation output,and is statistically significant;in non-state-owned enterprises,whether it is board human capital Although the relationship between social capital and innovation output is not insignificant,except for the director’s overseas background,which has a negative effect on innovation output,the others are positive.This shows that board capital still has a positive effect on innovation output in non-state-owned enterprises.A certain promotion.Finally,it is found that the executive pay gap(short-term executive pay gap and long-term executive pay gap)and the interactive effect of board human capital and board social capital on innovation output are not significant,indicating that the two have no significant impact on the innovation output of high-tech enterprises.Has an interactive effect.In state-owned enterprises,the coefficient of the interaction term between the long-term salary gap between executives and the professional background of directors is negative and statistically significant,while the coefficients of other interaction terms are not statistically significant.This shows that in state-owned enterprises,the long-term salary gap of executives and the professional background of directors have a substitution effect on innovation output,that is,the professional background of directors weakens the inhibitory effect of the long-term salary gap within executives on innovation output.(3)In terms of executive compensation gap,board capital and innovation sustainability: First,the relationship between short-term and long-term executive compensation and innovation sustainability is significantly positive,indicating that both short-term and long-term executive compensation gaps can be Promote the sustainability of innovation in high-tech enterprises,and the role of long-term executive compensation gap is greater than that of executives’ short-term compensation gap;in non-state-owned enterprises,the short-term compensation gap of executives has a positive correlation with innovation sustainability,and the long-term compensation gap is The correlation coefficient of innovation continuity is positive,but not significant,indicating that the short-term salary gap of executives in non-state-owned enterprises has an incentive effect on innovation continuity;in state-owned enterprises,the relationship between executive salary gap and innovation continuity is not significant.Secondly,the professional background of the human capital of the board of directors does not have a significant effect on the sustainability of innovation,and the relationship between the overseas background of the board of directors and the sustainability of innovation is significantly positive,indicating that directors with overseas backgrounds have a significant role in promoting the sustainability of innovation in high-tech enterprises;The social capital of the board of directors and the sustainability of innovation,and the social capital of the board of directors does not have a significant effect on the sustainability of innovation of high-tech enterprises.The overseas background of human capital of the board of directors in state-owned enterprises is positively correlated with the sustainability of innovation,which shows that directors with overseas background have exerted their overseas advanced innovative knowledge and ideas,and promoted the sustainability of innovation in my country’s state-owned enterprises.The social capital of the board of directors has a negative correlation with innovation sustainability,but it is not statistically significant.Finally,it is found that the interaction coefficient between the long-term compensation gap of executives and the professional background of the directors of the board of directors is negative and statistically significant,indicating that the professional background of the directors of the human capital of the board of directors and the long-term compensation gap of executives are sustainable for the innovation of high-tech enterprises.It has a substitution effect.The short-term executive compensation gap and the interaction coefficient of the board’s human capital and social capital are not significant,indicating that the executive short-term compensation gap and the board’s capital do not have a substitution effect or a complementary effect on the sustainability of innovation.The interactive effect of executive compensation gap and board capital on innovation sustainability.In state-owned enterprises,the interaction coefficient of the financial relationship between executive short-term compensation gap and board social capital is negative and statistically significant,indicating that executive compensation The financial relationship between the gap and the board of directors has a substitution effect.The coefficient of the interaction term between the long-term compensation gap of executives and the overseas background of board human capital is positive,indicating that the overseas background of board human capital and the long-term compensation gap of executives have complementary effects on the sustainability of innovation.The interaction coefficient of the long-term executive compensation gap and the financial relationship between the board ’s social capital is negative,indicating that the long-term executive compensation gap and the financial relationship between the board of directors have a substitute effect on innovation sustainability;in non-state-owned enterprises,the executive compensation gap is The board’s capital has no significant effect on the sustainability of innovation.The innovation of this article is mainly reflected in the following three aspects:(1)Compared with the existing research literature,in terms of the research on the executive pay gap,it breaks through the existing literature and only uses the short-term executive pay gap as a substitute variable for the executive pay gap.Conduct research on the impact of innovation activities.There are relatively few literatures similar to the research in this article,but the long-term executive compensation gap,as a part of the executive compensation gap,is better for executives to reach agreement between their own interests and the interests of shareholders,so the impact of their research on innovation activities Need to gradually get attention.(2)The current research is mainly about the relationship between executive compensation and innovation or the relationship between board capital and innovation.Few people combine the two to study the interactive effects of innovation.Therefore,board capital is included in the top management.In the framework of the relationship between salary gap and innovation,the conclusions of this research not only demonstrate once again the view that “the executive team and the board of directors jointly determine corporate innovation”(Zhong Xi et al.,2019),it also increases how the board’s capital and executive team’s salary gap is The knowledge that affects corporate innovation together also deepens the literature’s understanding of the conditions under which the salary gap of the executive team can affect corporate innovation.(3)In addition,when researching innovation,it is comprehensively measured from the three perspectives of innovation input and output and innovation continuity.The reason why innovation continuity is added is because innovation is cumulative and continuous,and whether the enterprise’s innovation is continuity,It is more important for the future development of the enterprise.In the extended analysis,we further study the intermediary effect of the corporate performance through the transmission path of the innovation sustainability of the executive pay gap,which more fully illustrates the importance of corporate innovation sustainability.The executive pay gap can be promoted through continuous innovation.Ultimately affecting corporate performance.