Game Analysis on Influence Mechanism of Equity Incentive on R&D Investments

Authors

  • Cao Wen Management School of Shanghai University of Engineering Science, Shanghai, China
  • Li Yuewen Management School of Shanghai University of Engineering Science, Shanghai, China

DOI:

https://doi.org/10.18488/journal.67/2014.1.1/67.1.1.5

Keywords:

Equity incentive, R&D investments, Game, Shareholders, Manager, Principal-agent relationship

Abstract

A game model between shareholders and manager is built to analyze influence mechanism of equity incentive on R&D investments based on principal-agent theory. Research shows that there are inverted U-shaped relationships between equity incentive and R&D investments, the modest equity should be gave for stimulate manager.

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Published

2014-06-16

Issue

Vol. 1 No. 1 (2014)

Section

Articles

How to Cite

Game Analysis on Influence Mechanism of Equity Incentive on R&D Investments. (2014). Review of Knowledge Economy, 1(1), 1-5. https://doi.org/10.18488/journal.67/2014.1.1/67.1.1.5