A Study On The Synergy Effect Of Fiscal And Tax Concessions And Executive Compensation On R&D Investment

In the era of knowledge economy,innovation is the important guarantee for enterprises in the fierce market competition,R&D investment is the core of innovation.Although the intensity of R&D investment in China has been increasing in recent years,it is still low compared with developed countries.This phenomenon has become an important factor restricting the strategic transformation of China’s economic "innovation-driven" and enhancing the national comprehensive strength.How to solve the problem of lack of R&D investment,the academic community mainly from the fiscal and tax concessions and executive compensation launched the research.The current research on the impact of fiscal and tax concessions and executive compensation on R&D investment is mainly focused on the single factor research level,lack of systematic and deep analysis.As the impact of the level of R&D investment is a complex system problem,rather than a simple problem of the simple element.Therefore,incorporating the executive compensation,fiscal and tax concessions and R&D investment into the same research framework,research and reveal the impact of executive compensation and fiscal and tax concessions on the company’s R&D investment from the system level not only further expand the scope of the study,but also provides a new perspective for enhancing the company’s R&D investment.In order to examine the synergistic effect of executive compensation and fiscal and tax concessions on corporate R&D investment,this paper adopts normative research method and empirical research method,chooses the research samples of Shanghai and Shenzhen A-share listed companies from 2010 to 2015 to carry out empirical research.The empirical research results are as follows: First,In general,executive annual salary can significantly improve R&D investment,executive shareholding ratio and R&D investment was inverted U-type relationship;in terms of raising R&D investment,the incentive effect of stock incentive is better than the annual salary;For state-owned enterprises,executive annual salary and shareholding ratio can significantly promoteR&D investment;For private enterprises,executive annual salary can not effectively improve R&D investment,shareholding ratio only in the range of 0 to 36.44%significantly promote R&D investment.Second,the government subsidy and preferential tax rate can significantly improve R&D investment of different ownership enterprises,but the preferential tax rate is better.Thirdly,The interaction between the government subsidy and the preferential tax rate,the executive annual salary and the government subsidy and the preferential tax rate have significantly synergistic effect on the R&D investment of different ownership enterprises;The interaction between shareholding ratio and annual salary and the government subsidy and the preferential tax rate have significantly synergistic effect on the R&D investment of different ownership enterprises only when shareholding ratio in the range of 0 to 36.44%.In view of the conclusion,this paper puts forward some countermeasures and suggestions from the enterprise and the government.Enterprise level,design the executive compensation structure rationally,to equity incentive as the leading direction.Government level,combined government subsidies and tax incentives,to tax incentives for the direction;to adjust the proportion of government subsidies in different ownership enterprises.