The Impact of Executive Pay Gap on R&D Based on the Perspective of Financing Constraints

DOI

10.2991/jahp-19.2019.158How to use a DOI?

Keywords

executive pay gap; R&D; financing constraints; high-tech enterprises

Abstract

This paper selects the panel data of China's GEM listed companies in 2013-2018 as a sample. Based on the tournament theory, it examines the impact of the internal compensation gap of the executive team on the R&D. The research shows that under the full sample, the internal salary gap of the senior management team of the GEM listed companies is significantly positively correlated with the R&D intensity. In addition, this paper uses the SA index to calculate the degree of financing constraints to further group the samples of China's GEM listed companies. The study finds that the impact of the executive pay gap between the sample of companies with strong financing constraints and the sample of companies with weak financing constraints on R&D exists certain differences: the positive correlation between the executive compensation gap and R&D in the sample of companies with weak financing constraints will be further enhanced, while the incentive effect of the executive compensation gap on R&D is weakened in the sample of companies with strong financing constraints.

Copyright

© 2019, 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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TY  - CONF
AU  - Lu Sun
AU  - Anqi Luo
PY  - 2019/09
DA  - 2019/09
TI  - The Impact of Executive Pay Gap on R&D Based on the Perspective of Financing Constraints
BT  - Proceedings of the 4th International Conference on Economy, Judicature, Administration and Humanitarian Projects (JAHP 2019)
PB  - Atlantis Press
SP  - 777
EP  - 782
SN  - 2352-5428
UR  - https://doi.org/10.2991/jahp-19.2019.158
DO  - 10.2991/jahp-19.2019.158
ID  - Sun2019/09
ER  -