R&D Investment,Executive Incentive And Enterprise Performance

The ability of independent innovation is an important indicator of a nation’s comprehensive strength,and high-tech enterprises are the "leaders" of China’s scientific and technological innovation,and their development will certainly play a positive role in improving the nation’s comprehensive strength.As we all know,the independent innovation ability of high-tech enterprises is closely related to R&D activities,and R&D investment is the fundamental guarantee for their R&D activities,which not only can help enterprises to obtain new products and technologies,but also can bring huge economic benefits to the company,thus improving the performance level of the company.Executives are the "conductors" of the enterprise’s management decisions,and their decisions will directly affect the company’s R&D activities.At present,the separation of ownership and management rights is common in Chinese enterprises,which makes the executives of enterprises tend to consider the long cycle time and high risk of R&D activities when making R&D decisions,and take a negative attitude towards R&D investment,and are prone to short-sighted behavior,thus affecting the improvement of enterprise performance.In order to avoid such problems,it is necessary to adopt effective incentive strategies for executives to align their interest goals with those of corporate owners,so that they will take the initiative to participate in research and development in view of the long-term development of the company.Therefore,it is important to explore the influence of executive incentives on R&D investment and corporate performance of high-tech enterprises from the perspective of executive incentives.This paper explores the impact of R&D investment on firm performance by taking high-tech enterprises from 2012-2021 as the research object.Combining literature analysis,inductive analysis and empirical research,the relationship between R&D investment and firm performance,and the moderating role of executive incentives between the two are investigated in depth.The results show that there is a significant positive relationship between both current R&D investment and R&D investment with a lag of 1-3 years and enterprise performance;executive compensation incentives positively regulate the relationship between R&D investment and enterprise performance,while executive equity incentives negatively regulate this relationship;given the different nature of equity in high-tech enterprises,the sample is divided into state-owned enterprises and non-state-owned enterprises,and further research shows that executive compensation incentives positively regulate the relationship between R&D investment and firm performance in both state-owned and non-state-owned high-tech enterprises,while executive equity incentives positively and negatively regulate the relationship between R&D investment and firm performance in state-owned and non-state-owned high-tech enterprises,respectively.The purpose of this study is to analyze the relationship between R&D investment,executive incentives and corporate performance,so as to design an executive incentive mechanism that can achieve sustainable development goals and promote more effective R&D activities in high-tech enterprises to improve corporate performance.