Research On Executive Equity Compensation,Industry Competition And Corporate R&D

At present,innovation has become the main force to promote national economic and social development.Research on the R&D of enterprises at the micro level is helpful to stimulate social innovation,and at the macro level is also helpful to deepen supply side reform and accelerate industrial transformation and upgrading.Based on the literature review at home and abroad,this paper studies the impact of executive equity compensation incentive on Enterprise R&D by constructing the method of simultaneous equation,and further integrates the industry competition factors to investigate the impact of competition mechanism on the compensation incentive mechanism.This paper mainly answers the following questions:(1)What is the impact of executive equity compensation incentive on Enterprise R&D?(2)Is there any difference in the impact of different types of equity compensation incentive on Enterprise R&D?(3)Does industry competition affect the relationship between executive compensation and R&D?The results show the following conclusions.First of all,for the listed companies in China,the implementation of executive equity incentive will help to stimulate the R & D vitality and promote the R & D of enterprises.Compared with the restricted stock based equity compensation incentive,the stock option based equity compensation incentive plays a greater role in promoting the R & D of enterprises.Finally,industry competition will have a certain impact on the relationship between executive compensation incentive and enterprise R & D,which is reflected in the fact that with the improvement of industry competition,the incentive effect of stock option executive compensation incentive on Enterprise R & D investment is weakened.On this basis,this paper puts forward relevant policy suggestions for the government and enterprises on how to stimulate the R&D vitality and improve the R&D innovation ability,providing decision-making reference for the relevant functional departments:(1)The government should perfect the relevant laws and regulations of equity incentive and protect the implementation of equity incentive plan;(2)standardize the mechanism of R&D information disclosure and strengthen the management and supervision of R&D information disclosure;(3)enterprises should pay attention to the effect of equity incentive and choose the appropriate incentive method of equity compensation;(4)combine internal and externalgovernance and comprehensively consider to stimulate the R&D vitality of enterprises.