Empirical Study on R&D Investment and Financial Performance of GEM Companies under Compensation Incentive Regulation

Abstract

The 19th National Congress of the Communist Party of China clearly stated that “Innovation is the primary driving force for development and the strategic support for building a modernized economy. Research and development investment has an important impact on the company's financial performance. Based on this, this paper selects gem listed companies from 2015 to 2019 as sample data to study the relationship between R&D investment and financial performance and the moderating effect of salary incentive on R&D investment and financial performance. The method of multiple linear regression was selected for analysis. The results show that R&D investment is positively correlated with financial performance. Compensation incentive has a negative moderating effect on R&D investment and financial performance.