Research on the Influence of Outside Directors on Enterprise Technological Innovation Based on Multiple Linear Regression Model from the Perspective of Compensation

According to the previous studies, the improvement of the independence of the board of directors is conducive to enterprise innovation. In fact that, directors serve as shareholders' agents and thus may also encounter agency and incentive problems. In this paper, we established a multivariate linear model that affects the technological innovation of enterprises, to explore whether increasing the remuneration of outside directors is conducive to the innovation investment of enterprises. Taking Chinese A-share listed companies as samples, we find that, enterprise innovation input will increase significantly with the increase of external directors' compensation, On average, for every 1 percentage point increase in the compensation level of outside directors, the investment in R&D of enterprises will increase by 0.2%. but this influence only exists when the external directors' compensation reaches the corresponding threshold value.