The Moderating Effect of Equity Incentive on Slack and R & D Investment
- DOI
- 10.2991/ichssr-17.2017.91How to use a DOI?
- Keywords
- Equity incentive, Slack, R&D investment.
- Abstract
The R&D activities of an enterprise play an important role in improving its core competitiveness, and the research and development is based on a large amount of resources. The slack of the enterprise can provide support for R&D investment, executive equity incentive can regulate the relationship between them. In this paper, we choose the non-financial companies in China's A-share market in 2009-2015 as the research sample, and establish the multiple regression equation, then test the influence of the company's slack and executive equity incentives on R&D investment. We argue that slack has a significant role in promoting R & D investment. Further studies showed that as a kind of corporate governance mechanism, the equity incentive can alleviate the management agency problem in the use of slack holding, mitigate financial constraint in innovation, increase the enterprise R & D investment.
- Copyright
- © 2017, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Mingzhu Liu AU - ShuJun Ye PY - 2017/05 DA - 2017/05 TI - The Moderating Effect of Equity Incentive on Slack and R & D Investment BT - Proceedings of the 2017 3rd International Conference on Humanities and Social Science Research (ICHSSR 2017) PB - Atlantis Press SP - 435 EP - 438 SN - 2352-5398 UR - https://doi.org/10.2991/ichssr-17.2017.91 DO - 10.2991/ichssr-17.2017.91 ID - Liu2017/05 ER -