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

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.