Abstract
Based on social exchange theory, signal transmission theory and enterprise life cycle theory, this paper empirically analyzes the impact of CSR performance on enterprise innovation investment by taking the A-shares listed private enterprises in Shanghai and Shenzhen stock markets from 2009 to 2019 as research samples. At the same time, we pay attention to the moderating effect of executive compensation incentive, explore the dynamics of the influence mechanism in different life stages. The results show that: there is a significant positive correlation between CSR performance and enterprise innovation investment, that is, CSR behavior is conducive to the improvement of enterprise innovation investment intensity; Executive compensation incentive has a negative moderating effect on this relationship. The higher the incentive level of executive compensation, the weaker the positive impact of CSR performance on innovation investment. Further research shows that CSR performance affects innovation investment through the exchange of government resources and the promotion of market position, but the effects are different during the enterprise life cycle. Relevant conclusions enrich the theory and practice of CSR performance and enterprise innovation investment from the dynamic perspective, provide a theoretical basis for private enterprises to develop a reasonable and effective executive compensation incentive system.
Highlights
Over the past 40 years of reform and opening up, private enterprises have developed rapidly into an important part of the main body of China’s market economy. “ e 14th FiveYear Plan is the first critical five years for China to move into the forefront of innovative countries
By introducing social exchange theory, signaling theory, and enterprise life cycle theory, this paper focuses on private enterprises, starts from the main line that Corporate Social Responsibility (CSR) behavior affects enterprise innovation investment, elaborates the resource exchange role and signaling motive of enterprise CSR behavior, empirically analyzes the relationship between CSR performance, executive compensation incentives and innovation investment, and examines the role of government and market in it
E results show that:(1) CSR activities are conducive to enhancing innovation investment; (2) executive compensation incentives have a negative moderating effect on the relationship between CSR performance and innovation investment in mature and declining stage companies; (3) CSR performance can only be enhanced by obtaining more government subsidies and realizing the exchange effect of government resources to enhance innovation investment in mature and declining stage companies; (4) CSR performance can only be enhanced by obtaining more government subsidies in mature and declining stage companies; (5) CSR performance can only be enhanced by obtaining more government subsidies to enhance innovation investment in mature and declining stage companies
Summary
Over the past 40 years of reform and opening up, private enterprises have developed rapidly into an important part of the main body of China’s market economy. “ e 14th FiveYear Plan is the first critical five years for China to move into the forefront of innovative countries. Erefore, it is important to strengthen the sense of social responsibility of private enterprises, stimulate the entrepreneurial spirit, and promote greater investment in innovation to accelerate the transformation of our economy into a high-quality development track [1]. E second is to shape an effective internal governance mechanism based on incentives and supervision; both CSR fulfillment and innovation R&D require long-term large-scale investment of resources, and the decision-making role played by corporate executives cannot be ignored [5]. Erefore, with the continuous improvement of internal governance mechanisms in private firms, it remains to be explored how executive compensation incentives as an important organizational factor affects the relationship between CSR fulfillment and innovation investment Effective incentives can improve the motivation of executives to work, a study by Chen, Jian-Lin, and Wen, Zheng-Jie [8] for family firms concluded that aggressive compensation incentives for executives weakened executives’ attention to non-financial indicators of CSR, i.e., the tendency of CSR behavior in family firms would be weakened. erefore, with the continuous improvement of internal governance mechanisms in private firms, it remains to be explored how executive compensation incentives as an important organizational factor affects the relationship between CSR fulfillment and innovation investment
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