The Impact of Executive Compensation Incentives on Corporate Innovation Investment

Fangzhou Liu; Mingyu Dai

doi:10.47297/wspeiWSP2516-253502.20250906

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The Impact of Executive Compensation Incentives on Corporate Innovation Investment

Volume 9, Issue 6

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The Impact of Executive Compensation Incentives on Corporate Innovation Investment
The Impact of Executive Compensation Incentives on Corporate Innovation Investment
1.School of Computer Science, North China Institute of Aerospace Engineering, Langfang, Hebei, 065000, China
2.School of Economics and Management, Lanzhou Jiaotong University, Lanzhou, Gansu, 730070, China
Vol. 9, Issue 6, Pages: 9-13(2025)
Published：30 December 2025
DOI：10.47297/wspeiWSP2516-253502.20250906
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Liu Fangzhou,Dai Mingyu.The Impact of Executive Compensation Incentives on Corporate Innovation Investment[J].Entrepreneurship and Innovation,2025,09(06):9-13.
DOI：

Liu Fangzhou,Dai Mingyu.The Impact of Executive Compensation Incentives on Corporate Innovation Investment[J].Entrepreneurship and Innovation,2025,09(06):9-13. DOI： 10.47297/wspeiWSP2516-253502.20250906.

摘要

Abstract

Using panel regression models with data from Chinese A-share listed companies from 2010 to 2020

this paper empirically examines the impact of executive compensation incentives on corporate innovation investment

and further investigates the moderating effects of government subsidies and financing constraints

as well as the mediating role of risk-taking. The findings indicate that executive compensation incentives significantly promote corporate innovation investment. Government subsidies strengthen this promotional effect

whereas financing constraints weaken it. Risk-taking plays a partially mediating role between the two. Heterogeneity analysis reveals that the promoting effect of executive compensation incentives on innovation investment is more pronounced in non-state-owned enterprises and high-tech enterprises. This study provides insights for optimizing incentive mechanisms and enhancing innovation motivation from a corporate governance perspective.

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references

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Guangqian Ren , Ruirui Feng , Caixia Zhen . State-owned Controlling Shareholding, Executive Incentives and Enterprise Innovation Efficiency [J ] . Reform of Economic System , 2022 , ( 02 ): 187 - 194 .

Zhou B , Li Y M , Sun F C , et al . Executive compensation incentives, risk level and corporate innovation [J ] . Emerging Markets Review , 2021 ( 3 ): 100798 .

Abdoh H , Liu Y . Does R&D intensity matter in the executive risk incentives and firm risk relationship? [J ] . Economic Modelling , 2021 , 96 : 13 - 24 .

Miculescu A . Do Tournament Incentives Matter for CEOs to Be Environmentally Responsible? Evidence from Chinese Listed Companies [J ] . International Journal of Environmental Research and Public Health , 2022 , 19 .

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