Abstract
With the vigorous implementation of China’s economic innovation and transformation and the deepening of market-oriented reform, “innovation driven” is an important national strategy to realize China’s economic transformation and upgrading and sustainable development. This paper takes the manufacturing listed enterprises in 2009-2019 as the research sample, and selects multiple regression and hierarchical regression analysis methods to study the data of the proportion of senior executives’ shareholding, the ratio of R&D expenditure to operating income and the rate of return on total assets. This paper discusses the relationship among executive equity incentive, R&D investment and enterprise performance. The empirical results show that: executive equity incentive has a significant positive effect on R&D investment. There is a significant positive correlation between the proportion of executives’ shareholding and the growth of corporate performance; R&D investment plays a partial mediating role between executive equity incentive and firm performance.
Highlights
With the vigorous implementation of China's economic innovation and transformation and the deepening of market-oriented reform, the scale of China's manufacturing industry ranks first in the "Thirteenth Five-Year Plan" period, it still faces enormous challenges, including the weak innovation ability of traditional manufacturing industry and the weakening of demographic dividend, which makes the comparative advantage of low production cost gradually weaken
In the modern corporate governance, the executive equity incentive scheme plays an increasingly significant role, on the one hand, it exerts a subtle influence on the management's R&D decision-making, on the other hand, it has an important impact on the steady growth of enterprise performance
This paper investigates the relationship between R&D investment and enterprise performance by many academic teams at home and abroad
Summary
With the vigorous implementation of China's economic innovation and transformation and the deepening of market-oriented reform, the scale of China's manufacturing industry ranks first in the "Thirteenth Five-Year Plan" period, it still faces enormous challenges, including the weak innovation ability of traditional manufacturing industry and the weakening of demographic dividend, which makes the comparative advantage of low production cost gradually weaken. The "14th Five-Year Plan" period is a key stage connecting the preceding with the following for the manufacturing industry, and the innovation-driven development strategy is mentioned. In order to successfully transform and upgrade the traditional manufacturing industry, we must adhere to independent innovation, incubate new competitive advantages, and face challenges with the opportunity of building a new development pattern[1]. In the modern corporate governance, the executive equity incentive scheme plays an increasingly significant role, on the one hand, it exerts a subtle influence on the management's R&D decision-making, on the other hand, it has an important impact on the steady growth of enterprise performance. What executive incentive schemes can effectively improve the R&D investment mechanism of enterprises and achieve sustainable development of enterprises, and there is still room for further theoretical research on how to link R&D investment between executive equity incentive and enterprise performance
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