Operating Leverage, Equity Incentive, and Enterprise Research and Development Investment

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Pubblicato in:Sustainability vol. 15, no. 9 (2023), p. 7023
Autore principale: Tan, Hui
Altri autori: Zhang, Xinhua, Zeng, Lili
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MDPI AG
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024 7 |a 10.3390/su15097023  |2 doi 
035 |a 2812747778 
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100 1 |a Tan, Hui  |u School of Economic and Management, Changsha University of Science & Technology, Changsha 410114, China 
245 1 |a Operating Leverage, Equity Incentive, and Enterprise Research and Development Investment 
260 |b MDPI AG  |c 2023 
513 |a Journal Article 
520 3 |a Science and technology innovation plays a vital role in the sustainable development of enterprises, and even in the security and sustainable development of a nation. Against the background of China’s structural “deleveraging” macro policy, the following two aspects are considered in this research: First, should operating leverage be removed, and how does it affect the innovation investment of enterprises? Second, what will be the impact of the implementation of equity incentives on the relationship between operating leverage and innovation investment? Using a longitudinal panel dataset of Chinese A-share listed companies from 2010 to 2020, this study empirically tested the impact and mechanism of operating leverage on enterprise innovation investment. The findings show that operating leverage significantly contributes to an increase in enterprise innovation investment in general, but the positive correlation trend decreases with the increase in operating leverage. The implementation of equity incentives plays a positive role in moderating the relationship between operating leverage and innovation investment. Further heterogeneity analysis shows that the promotion effect of operating leverage on innovation investment is significant only in non-state owned enterprises (SOE), and the positive regulating effect of equity incentives in non-SOEs is more significant than that of the overall sample. 
651 4 |a China 
653 |a Financial leverage 
653 |a Investments 
653 |a Sustainable development 
653 |a Costs 
653 |a Hypotheses 
653 |a Operating leverage 
653 |a Research & development--R&D 
653 |a Corporate profits 
653 |a Equity 
653 |a Profitability 
653 |a Incentives 
653 |a Sustainability 
700 1 |a Zhang, Xinhua  |u School of Economic and Management, Changsha University of Science & Technology, Changsha 410114, China 
700 1 |a Zeng, Lili  |u School of Management, Hainan University, Haikou 570228, China; <email>hugozeng80@163.com</email> 
773 0 |t Sustainability  |g vol. 15, no. 9 (2023), p. 7023 
786 0 |d ProQuest  |t Publicly Available Content Database 
856 4 1 |3 Citation/Abstract  |u https://www.proquest.com/docview/2812747778/abstract/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch 
856 4 0 |3 Full Text  |u https://www.proquest.com/docview/2812747778/fulltext/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch 
856 4 0 |3 Full Text - PDF  |u https://www.proquest.com/docview/2812747778/fulltextPDF/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch