Author(s)

Longyun Zhang

Corresponding Author

Longyun Zhang

Abstract

With the rapid development of economy, enterprises need to rely on technology to gain competitive advantage, so innovation ability plays a vital role in the long-term sustainable development of enterprises. This paper takes China's listed A-share companies from 2016 to 2021 as the research object, and uses SPSS software to analyze the relationship between R&D investment and enterprise performance under the adjustment of executive compensation. The results show that R&D investment is negatively correlated with short-term enterprise performance and positively correlated with long-term market value. In the incentive mechanism of executives, the salary incentive plays a significant positive role in regulating the relationship between enterprise R&D investment and enterprise performance. Finally, the conclusion of this study and the corresponding enlightenment are put forward.

Keywords

R&d investment, Enterprise performance, Executive pay, Regulatory effect