Research On The Relationship Among Executives Equity Incentive、R&D Investment And Enterprise Performance

In modern times,a science revolution as the core of new technology is a profound change our way of life and production,promoters and social development powerfully.In 2005 for the first time China establish"self-innovation"to be an important national strategy,in 2006 the Chinese government has issued a"national medium and long-term science and technology development plan outline(2006-2020)",puts forward to use 15 years into an innovative country.1 July 2008 the new revision of the law of the People’s Republic of China on science and technology progress law formally,on September 8,2010,the state council by the state council about accelerate the decision of the cultivating and developing strategic emerging industry".As the execution of a series of policies and measures.scientific investment having increased year by year in our country,but to completed the transformation from the"made in China "to "created in China",the current level of the R&D innovation is not enough.So how to encourage enterprises to innovation actively,increase investment in research and development, to promote economic development to improve the comprehensive national strength,become a hot academic research.Research and development input is the core of enterprise independent innovation motivation,is an important index of enterprise innovation.R&D decision-making is one of the most important decision for executives,the special properties of the R&D determines that the R&D investment decision will severe more executive agency more than other decisions.R&D is to explore new things,the process is long and hard,requires a lot of people,money and material resources,and it need a long time to generate economic benefit,these mean R&D activities of higher risk.If success,the enterprise can gain huge gains from it.But,once fail;the enterprise will waste a lot of money,lost opportunities in the competition,even lead to bankruptcy.For executives the failing will damage its reputation,and lower its long-term resource value as a professional manager.And R&D enterprises will take up a lot of money,the resources executives can control will be affected directly,then the executives’ on-the-job consumption will be affected.So if executives’ income is fixed or is it just depends on with the company’s current or short-term profits,then the executive as a economic man prone to pursue their own interests,so executive itself is lack of motivation to innovated,then,how to promote executives who has advantage of information,as a control of R&D investment decision-making to make R&D investment decision that can increase the enterprise value.maximize shareholder value.We believe scientific and reasonable executive incentive mechanism should be an effective solution.According to the theory of corporate governance,the long-term equity incentive for managers,let top managers hold shares in the company can not only motivate executives,also can make the interests of the managers and the owners convergent.Innovation strategy is a important decisions of the enterprisers of great significance to the long-term development of the enterprise,but for it will affect the manager’s own interests.the managers reduce to take risk,equity incentive will not only directly affect the management decision of R&D activity,also effect the relationship between R&D investment and enterprise performance.Due to the particularity of China’s national conditions,equity division reform started in 2005,equity incentive mechanism become more widely accepted by the people,compared with the developed countries,the present stage our the equity incentive mechanism is not mature enough,lack of theoretical basis.Due to the enterprise R&D input data is less before 2010,so the study of R&D is limited no matter from the quantity and depth.This article will use the latest data research the relationship among executive equity incentive R&D investment and enterprise performance.This paper is divided into six parts.The first part is the introduction;this part mainly elaborates the selected topic background combined with the related policy system in China,and the study significance,methods and innovation points. The second part.theoretical foundation and literature review.First,this paper expounds the theoretical basis of this article,includingrthe principal-agent theory,behavior motivation theory,human capital theory and the theory of technology innovation.Secondly.from the executive equity incentive and corporate performance,executive equity incentive and the R&D investment,R&D investment and enterprise performance as well as the executive equity incentive and corporate performance square in the face of the related literature at home and abroad to collect,sort out and summarized.The third part is the system background analysis.This part made a brief analysis of the development and status of the equity incentive and R&D. For equity incentive,we depart the development of equity incentive in China into two parts based on the cut-off point of the reform of non-gradable shares in 2005,and mainly introduces the reform of non-gradable shares after the disclosure of the listed company equity incentive plan quantity.mainly ways, incentive intensity and the industry distpibution.Article introduces simply illustrates the R&D activity is the main structure of the changes, and through the compare with United States and Japan, shows that there is still a gap between our country and developed countries.The fourth part is the empirical study design.This part based on the study of the former three parts,put forward four research assumptions:the executive equity incentive and corporate performance are related,executive equity incentive and enterprise R&D,R&D investment and enterprise performance is positive related executive equity incentive on the relationship between the R&D investment and enterprise performance have positive regulatory role,use executives shares represent the executive ownership incentives,R&D spending amount of operating income ratio on behalf of the R&D strength,main business profit margins behalf of the enterprise performance,selection of a-share listed on the Shanghai and Shenzhen two city information technology industry,medicine, biological products and electronic components manufacturing listed companies from 2012 to 2014 data as samples,to establish related model.The fifth part is the empirical results and analysis.Using the model validation above assumptions had be put forward,empirical analysis the sample data with descriptive statistics,correlation analysis and regression analysis methods.The sixth part, conclusion and suggestion, according to the above analysis,proposed following suggesting:the enterprise will continue to optimize the internal governance structure,make full use of the incentive effects of equity incentive mechanism.attaches great importance to the R&D.At the same time,put forward the research limitations and further research direction.