Research On The Impact Of R&D Investment On Financial Performance Under Equity Incentive

In the context of today's rapid economic development,technological innovation has become increasingly important in promoting economic growth,especially in the process of profitability and sustainable development of high-tech enterprises,effect.Scientific and technological innovation is the fundamental driving force for improving social productivity and enhancing China's overall national strength.It is also the main driving force for improving the core competitiveness of enterprises.The foundation and the most important connotation of scientific and technological innovation activities are R&D activities.The input intensity of R&D activities is an important indicator to measure the technological innovation structure and the development level of science and technology of an enterprise,and it can reflect the importance of a company's emphasis on technological innovation.In the modern enterprise system of "separation of two powers",due to the existence of multi-layer principal-agent relationship and information asymmetry,this leads to a very serious principal-agent problem.Because R&D activities are characterized by high risk,long cycle,and lag in revenue,agents are able to avoid risks for their own interests,thereby reducing R&D investment and reducing opportunistic behavior and short-sighted behavior of corporate performance.Therefore,how to regulate the opportunistic behavior of the principal agent and solve the problem of low efficiency of enterprise R&D allocation has attracted the attention of the academic community.At present,equity incentives are recognized as a more effective way to solve the problem of principal-agent problems in the academic world.Therefore,how to promote equity investment and how to invest in R&D,and what is the effect of R&D investment to financial performance?Researching this issue is beneficial to help companies rationally design equity incentive plans and increase R&D investment intensity to improve corporate financial performance.In order to better study and analyze the impact of R&D investment on corporate performance under equity incentives,ZTE Corporation was selected as the research object based on the research background,purpose,significance and theoretical analysis of relevant domestic and foreign literatures.After introducing the basic situation of ZTE Corporation and the main course of equity incentives,the paper analyzes the financial statements of ZTE and describes the status of ZTE's R&D investment and related financial performance.Using comparative analysis and quantitative analysis to qualitatively analyze the relationship between ZTE's equity incentives,R&D investment and financial performance,and select relevant indicators of the company's senior shareholding ratio,number of R&D personnel,R&D intensity and financial performance.On the basis of economic growth theory,technological innovation theory and input-output theory,IBM.SPSS.24.0 software is used as a statistical tool for ZTE's 2006-2017 executive shareholding ratio and R&D intensity and R&D intensity and correlation.The financial performance indicators were analyzed for correlation,and the correlation between them was analyzed.The influence of ZTE's R&D investment on financial performance under equity incentives was analyzed and summarized.A series of research conclusions were drawn.It has formed relevant rationalization proposals for relevant high-tech enterprises to effectively promote R&D investment through equity incentives to improve corporate financial performance.