Research On Executive Control,Incentive Mechanism And Corporate Innovation Performance

In the era of the knowledge economy,innovation has become the basis and main source of power for the survival and development of enterprises and the acquisition of sustainable competitive advantages.It has become more and more important in the market competition and national economic development.The rapid development of science and technology and the rapid shortening of product life cycles have made it extremely urgent to study how to gain competitive advantage by improving the innovation ability of enterprises.As the core issue in the field of corporate governance,the transfer of control caused by the separation of the two powers has a comprehensive and key structural impact on the operation and development of the enterprise.At present,China is building an innovative country,so it is of great theoretical and practical significance to study how to improve the ability of enterprise R&D and innovation from the perspective of control in the process of discussing corporate governance.In order to further explore the potential impact of structural factors on the innovation performance of enterprises,this article from the perspective of control rights,based on the theory of control rights and principal-agent theory,based on the 2010-2018 Shanghai and Shenzhen A-share listed companies as a sample Theoretical analysis and empirical tests were conducted on the relationship between executive control,incentive mechanism,corporate R&D investment and innovation performance.The empirical results show that:(1)executive control is significantly positively related to corporate R&D investment and innovation performance;(2)Executive equity incentives not only do not show a positive theoretical adjustment in the relationship between control rights and corporate R&D investment,but they also show a significant inhibitory effect;(3)Executive compensation incentives have a significant impact on control and R&D investment.Although the correlation is positive,it does not show a clear moderating effect;(4)Enterprise R&D investment is significantly positively related to innovation performance,and R&D investment plays an intermediary role between executive control and innovation performance.The main contribution and innovation of this article is that by introducing control theory and principal-agent theory,the capital structure and governance structure are simultaneously incorporated into the research framework of enterprise innovation performance,clarifying that the capital structure is an integral part of the corporate governance structure.In the current competition environment of innovation-driven enterprises,the research conclusions of this paper provide important inspirations for companies on how to improve their R&D capabilities and innovation performance from the perspective of corporate capital structure power allocation,and at the same time,they should choose carefully and Use executive incentives to provide empirical evidence.