Thesis About The Influence Of Equity Incentive And R&D Investment On Corporate Financial Performance

In recent years,manufacturing enterprises are facing downward pressure.Enterprises urgently need to improve profitability and financial performance.As a new governance method widely used by enterprises,equity incentive can not only change the risk aversion of managers,strengthen their risk tolerance,avoid short-sighted behaviors detrimental to the development of the company,pay more attention to the long-term development of the company,but also urge managers to make correct and reasonable risk project decisions,such as investing in high-risk and high-yield innovation projects,so as to strengthen the enthusiasm of R & D investment,Drive the breakthrough improvement of the company’s operating performance.Granting equity incentive to core employees can reduce the turnover rate of core employees,fully mobilize their subjective initiative,promote the quality and quantity of innovation capacity of core employees,and have a positive impact on enterprise performance.Having sufficient R & D funds can allow employees to try and make mistakes,constantly learn lessons from them,accumulate failure experience,explore more advanced and reasonable innovation methods,greatly improve the output rate,strengthen the conversion rate of market products,and create maximum excess returns for the company,so as to have a positive impact on the financial performance of the enterprise.Therefore,in this topic,the author will start from the three aspects of equity incentive,R& D investment and financial performance,and divide the equity incentive into management equity incentive and core employee equity incentive,and tentatively study the action mechanism and transmission relationship.Based on incentive theory,principal-agent theory and technological innovation theory,this thesis selects manufacturing listed enterprises from 2013 to 2020 as the research object,makes a comprehensive and detailed analysis by using a variety of feasible and effective methods such as descriptive statistics and correlation analysis,and comprehensively tests the analysis results.Finally,the following important conclusions are drawn:(1)in manufacturing enterprises,whether for the management,Or equity incentive policies for core employees,it can significantly and positively promote enterprise financial performance;(2)In manufacturing listed enterprises,management equity incentive has a significant positive impact on R & D investment.As an intermediate transmission mechanism,R & D investment plays a partial intermediary effect between management equity incentive and financial performance of manufacturing listed enterprises;(3)In manufacturing enterprises,R & D investment,as a regulatory variable,positively regulates the promotion of equity incentive of core employees on enterprise financial performance.The following suggestions are drawn:(1)improve the executive equity incentive system of enterprises;(2)Improve the equity incentive mode of enterprise core employees;(3)Increase the R & D investment of enterprises.