Proceedings of the 2017 3rd International Conference on Humanities and Social Science Research (ICHSSR 2017)

The Moderating Effect of Equity Incentive on Slack and R & D Investment

Authors
Mingzhu Liu, ShuJun Ye
Corresponding Author
Mingzhu Liu
Available Online May 2017.
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/).

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Volume Title
Proceedings of the 2017 3rd International Conference on Humanities and Social Science Research (ICHSSR 2017)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
May 2017
ISBN
10.2991/ichssr-17.2017.91
ISSN
2352-5398
DOI
10.2991/ichssr-17.2017.91How to use a DOI?
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  -