An Empirical Study On The Influence Of Executive Incentive On Enterprise Innovation

Innovation is particularly important for a country and a nation.It is not only a strong guarantee for a country’s economic growth,but also an important manifestation of a nation’s progress.In recent years,our country’s innovation and R&D strength has been continuously improved,which has greatly promoted the sustainable and healthy development of our country’s national economy.Under the conditions of market economy,enterprises are the main body of technological innovation.For enterprises,to promote the long-term development of enterprises by insisting on the path of technological innovation may require a lot of material and financial resources.At the same time,innovation activities may also face low returns,long cycles,and even failures and other risks.And corporate executives are the leading force in making innovation decisions and investing in innovation activities.Therefore,companies need to implement reasonable and attractive incentives for executives to encourage executives to carry out corporate innovation activities,so as to promote the company to become stronger and stronger.So,can executive incentives really promote corporate innovation? Furthermore,how will companies with different ownership concentrations and different ownership properties affect the relationship between executive incentives and corporate innovation?This paper selects the data of all A-share listed companies in our country from2011 to 2020 as a sample to study the correlation between executive incentives and corporate innovation.This paper uses equity incentives and compensation incentives as the measurement variables of executive incentives,uses the ratio of R&D expenses to operating income to represent innovation input,and the number of patent applications represents innovation output to measure corporate innovation,empirically examine the impact of executive incentives on corporate innovation.Then,two moderator variables,ownership concentration and ownership nature,are introduced to explore how they affect the relationship between executive incentives and corporate innovation.Empirical research found that: First,executive incentives are positively correlated with corporate innovation,that is,executive incentives can promote corporate innovation;Second,ownership concentration negatively moderates the relationship between executive incentives and corporate innovation,that is,compared with in enterprises with high equity concentration,executive incentives in companies with low equity concentration can more promote corporate innovation activities;Third,the more the nature of corporate equity is more inclined to stateowned enterprises,the stronger the negative adjustment relationship between executive incentives and corporate innovation,that is,compared with state-owned enterprises,the implementation of executive incentives in private enterprises can promote the innovation activities of enterprises.This paper is divided into six chapters,and the contents of each chapter are as follows: The first chapter is the introduction of the article,mainly about the research background,research problems,research significance,possible innovations and shortcomings;The second chapter is the literature review,which mainly summarizes the three aspects of the relationship between executive incentives,corporate innovation,executive incentives and corporate innovation.Chapter three puts forward three main assumptions of this paper based on the analysis of principalagent theory and incentive theory.The main content of the fourth chapter is the research design,including data processing and model construction;The fifth chapter is the empirical test and robustness test of the hypothesis proposed in this paper;The sixth chapter is to summarize the research results of this paper,provide reasonable suggestions to government,companies and investors,and propose future research prospects.The innovation of this paper is mainly reflected in the measurement of enterprise innovation from the perspectives of innovation input and innovation output.At the same time,the number of patent grants is used to measure innovation output for robustness test,which enriches the perspective of related research.