The Impact of R&D Investment on Enterprise Performance: A Perspective on Executive Motivation

R&D investment serves as the primary driver for corporate value enhancement, while executive incentives modulate the efficiency of translating innovation into performance. Utilizing data from Chinas A-share listed companies between 2013 and 2022, this study empirically examines the impact of R&D investment on corporate performance and the moderating role of executive incentives. The findings reveal that R&D investment significantly boosts corporate performance. However, compensation incentives exert a negative moderating effect, whereas equity incentives show no significant influence. Notably, R&D investment demonstrates a more pronounced effect on enhancing the performance of state-owned enterprises. To foster innovation, the government should augment fiscal and tax support for corporate R&D, implement differentiated support policies, and invigorate innovation vitality in non-state-owned enterprises. Additionally, corporations should strive to balance long-term and short-term incentive structures to optimize performance outcomes.