Based on managerial power theory, with samples in 2002-2009 year, this study analyzes that executives use power to affect the relationship between equity incentives and R & D investments. This study finds that, compared with non-manager control companies, the power of executives in manager control companies is more prominent. In manager control companies, executives can use power to influence the relationship between equity incentives and R & D investments, and the implementation of equity incentives to executives reduces the R & D investment. The results show that the greater the power, the smaller the incentive role of equity incentives to R & D investments. It provides not only references for the companies to launch equity incentive plans, but also new clues and new ideas for in-deep studies on corporate governance and managerial power effects
Keywords: Equity incentive, Manager control company., Managerial power, R & D investment
