Equity Incentives, R & D Investment and Corporate Performance

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Huang, Weiwei (2020) Equity Incentives, R & D Investment and Corporate Performance. [Dissertation (University of Nottingham only)]

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Abstract

Research and development (R&D) are a significant component of corporate innovation and determines a company's core competitiveness. Equity incentives are indispensable in corporate governance.



This paper selects Shanghai and Shenzhen A-share public companies as research samples. The observation period is 2015 to 2019. After processing and eliminating some data, 12,088 firm-year observations were reserved. It adopts a quantitative research method and conducts empirical research analysis on the sample data. The relationship between equity incentives, R&D investment and corporate performance is explored. Specifically, equity incentives are considered as a moderator for R&D to influence corporation performance. In addition, considering the special characteristics of high-tech enterprises which rely heavily on R&D, this paper selects high-tech enterprises to make group regression analysis separately.



The conclusions are eventually obtained as follows：

(1)Company performance increased with the increase of equity incentives.

(2) The relationship between company R&D investment and equity incentive is positively correlated, and the role of equity incentive on R&D investment is stronger in high-tech enterprises.

(3) the company's performance is negatively related to R & D investment, and the influence is weaker in high-tech enterprises.

(4) Equity incentives are a moderating factor that moderates the relationship between R&D investment and corporate performance



In particular, Conclusion (3) is contrary to many scholars’ arguments which has been under discussion. The findings of this paper also extend to the limitations and further study. It also makes some recommendations to the government and enterprises.

Item Type: Dissertation (University of Nottingham only)
Keywords: Equity Incentives, R & D Investment, Corporate Performance, High-tech companies
Depositing User: HUANG, Weiwei
Date Deposited: 02 May 2023 10:52
Last Modified: 02 May 2023 10:52
URI: https://eprints.nottingham.ac.uk/id/eprint/68234

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