The Influence Of Managements’ Income Incentive Packages On Enterprise R&D Efficiency

Continuous R & D and innovation is essential to the development of enterprises,which is also an important foundation and necessary condition for enterprises to improve their core competitiveness.In order to explore the mechanism of internal factors on innovation performance of enterprises and reveal the impact of external environment on R & D innovation of enterprises,the academic circles,from the micro and macro perspectives,discussed the impact of factors such as enterprise growth,enterprise financial situation,government subsidies,internal control,innovation system,financial development on R & D innovation of enterprises.This paper takes the listed companies in Shanghai and Shenzhen A-share market from 2012 to 2017 as the research sample,based on the theory of enterprise innovation,principal-agent theory and information asymmetry theory,and classifies the three main bodies including financing constraints,management incentives and enterprise R & D efficiency into one analytical framework,trying to analyze the following two problems through theoretical and empirical methods:(1)the relationship between management incentive and R & D efficiency.Based on the previous studies,this paper first studies the relationship between the two most important types of incentive and the R & D efficiency of Listed Companies in China: monetary compensation incentive and equity incentive.Then from the aspects of management incentive combination and combination structure,the paper demonstrates and analyzes the relationship between management incentive combination and enterprise R & D efficiency.(2)the interrelation and influence of financing constraints,management incentives and R & D efficiency.Financing constraint is an important external environmental factor in the process of enterprise development.The R & D investment of enterprises will inevitably be interfered by financing constraint.The research conclusions in this paper mainly include the following points:(1)monetary compensation incentive of management plays a certain role in promoting the R & D efficiency of enterprises;equity incentive of management has a significant inverted U-shaped relationship with the R & D efficiency of enterprises,showing the double effects of interest convergence effect and entrenchment effect.(2)through the analysis of management incentive portfolio,the relationship between management incentive portfolio and enterprise R & D efficiency is obtained.It should be noted that,compared with the single incentive combination,the comprehensive incentive combination of monetary compensation incentive and equity incentive can provide a more significant role and influence;as for the combination structure of incentive system,the greater the proportion of equity earnings in the total remuneration of management,the more favorable the R & D Efficiency of enterprises.(3)considering the relationship between management incentive and R & D efficiency,it can be found that financing constraint will inhibit the incentive effect of monetary compensation incentive on R & D efficiency;in addition,there is no significant relationship between the relationship between management incentive combination and R & D efficiency and financing constraint.The conclusion of this paper shows that there is a certain relationship between R & D efficiency and management incentive,and financing constraints have a corresponding impact on management incentive and R & D efficiency to a certain extent.Therefore,listed companies should pay attention to the impact of financing constraints when designing management compensation incentive.We can adjust the combination mode and combination structure to deal with financing constraints to improve the efficiency of enterprise research and development...