Research On The Influence Of Executive Incentives On Innovation Investment Of Listed Companies

Investment in technological innovation is a key link for enterprises to carry out independent innovation and an important guarantee for maintaining core competitive advantage and sustainable development.In the process of capital market allocation,with the introduction of a series of policies to encourage enterprise innovation,the R&D investment of listed companies has been significantly strengthened and improved.However,compared with the R&D level of western developed countries,China still has problems such as insufficient R&D investment.Senior executives,as important decision-makers in business activities,directly affect the positioning and strategic choice of enterprises in the market.However,due to the separation of the two rights,senior executives may avoid R&D investment by means of diversified investment in order to pursue the maximization of personal interests,which is ultimately manifested as insufficient R&D investment.Therefore,it is of great importance to explore the influence of executives' incentives on innovation investment in order to enhance enterprises' awareness of independent innovation and increase investment in technological innovation.Firstly,this paper reviews the research literature of experts and scholars on the incentive of executives and the investment of enterprise innovation.Then,this paper expounds the equity incentive and salary incentive and related concepts,such as executives emotion on the principal-agent theory,technological innovation theory,incentive theory,based on the theory of overconfidence of executives incentive of listed companies in our country present situation and the analysis of the present situation and problems of enterprise innovation investment,and put forward hypothesis,based on the model is constructed to verify the rationality of the proposed hypotheses.Finally,a total of 2,910 listed companies from 2014 to 2018 were selected as research samples to conduct regression analysis and robustness test on the above four hypotheses based on the constructed regression model.The empirical research shows that the executive incentive of listed companies is conducive to the improvement of the innovation level of enterprises,and the executive sentiment will promote the influence of salary incentive on the innovation input of enterprises,but it will not affect the effect of equity incentive on the innovation input of enterprises.Based on the results of empirical analysis,the paper suggests that the government should increase preferential policies and improve relevant legislation.Securities regulatory departments to improve and standardize regulatory measures;Enterprises should strengthen the consciousness of independent innovation and optimize the incentive mechanism for senior executives.