Managerial power, equity incentives and R & D investments–an empirical research on Chinese listed companies

Abstract

Based on managerial power theory, with samples in 2002-2009 year, this study analyzes that executives use power to affect the relationship between equity incentives and R & D investments. This study finds that, compared with non-manager control companies, the power of executives in manager control companies is more prominent. In manager control companies, executives can use power to influence the relationship between equity incentives and R & D investments, and the implementation of equity incentives to executives reduces the R & D investment. The results show that the greater the power, the smaller the incentive role of equity incentives to R & D investments. It provides not only references for the companies to launch equity incentive plans, but also new clues and new ideas for in-deep studies on corporate governance and managerial power effects

Keywords: Equity incentive, Manager control company., Managerial power, R & D investment

Article Review Status: Published

Pages: 1-24 (Download PDF)

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