Fubi Luo
China Center for Industrial Security Research, Beijing Jiaotong University, Beijing, China
Yong Zhu
School of Economics and Management, Chongqing Normal University, Chongqing, China
ABSTRACT
Abundant R&D investment plays an important role in the success of high-tech enterprises innovation, it is also the key point to improve the high-tech enterprises core competitiveness. In this paper, a game model is built to study the executives private earnings from R&D investment and R&D investment level theoretically, considering that executives acquire private earnings from the R&D investment and should afford the corresponding costs when the private earnings exceed a certain threshold value. The following conclusions can be drawn: the ratio of the executives R&D private earnings is positively connected with the threshold value which the executives grab private earnings freely, is negatively connected with the equity incentive level, is non-linear connected with the R&D investment; R&D investment have a positive relationship with the ratio of free private earnings, the relationship between R&D investment and equity incentive depends on whether the executives acquiring private earnings from R&D investment or not and the corresponding punishment.
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How to cite this article
Fubi Luo and Yong Zhu, 2013. Game Analysis on the Executives
Private Earnings and R&D Investment in Equity Incentive Process of High-tech
Enterprises. Journal of Applied Sciences, 13: 2092-2096.
DOI: 10.3923/jas.2013.2092.2096
URL: https://scialert.net/abstract/?doi=jas.2013.2092.2096
DOI: 10.3923/jas.2013.2092.2096
URL: https://scialert.net/abstract/?doi=jas.2013.2092.2096
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