Enterprise Equity Incentive And R & D Investment

Today,in the age of intellectual economy,R&D and creativity capabilities are key elements for firms to keep their core competitiveness.Our enterprise products should be truly "created in China",and no longer "made in China",the r&d investment activities of enterprises are essential.Senior executives of enterprises play a decisive role in r&d investment decisions,and r&d projects are characterized by large investment and uncertain results.Senior executives are usually unwilling to take such a large risk and generally reduce R&D investment activities as much as possible.Equity incentive mechanism is a long-term incentive means that allows operators and owners share the firm’s earnings,which is good to achieve the interest convergence between the two and lead managers to focus on the long-term profit of the company,which will increase the R&D investment.This paper discusses and analyzes equity incentives and R&D investment based on A-share listed firms,it will be of significant practical importance as it will enrich the research in this field.The calculation method of this paper is a combination of literature study and empirical study,i.e.,according to the principal-agent theory,motivational theories as a basis,based on the domestic and foreign academic circles about executive equity incentive and the relationship between r&d input the latest literature research,in China’s a-share listed firms in 2015-2020 data as the research sample,using Stata software,The four hypotheses proposed in this paper are analyzed by multiple regression analysis.Through empirical investigation,finds:(1)Equity incentive for senior executives will increase r&d investment;(2)There is a positive relationship between equity incentive and R&D investment;(3)Further dividing the economic nature of ownership,non-state-owned enterprises play a stronger role in promoting ownership than state-owned enterprises;(4)Whether it is further divided into high-tech enterprises or not,high-tech enterprises have a stronger promotion effect than non-high-tech enterprises.Based on the above findings,we suggests related actions and advice for Chinese enterprises establish a healthy equity incentive system to promote their R&D investment.:(1)improve the equity incentive program;(2)pay attention to agency issues in R&D activities;(3)establish a healthy company management system.