Research On The Impact Of Manager’s Stock Based Incentive On Enterprise’s Technological Innovation

Innovation is the first driving force leading economic and social development.It is an important long-term task for China to adjust economic structure and promote industrial upgrading.Viewing from economic development history of developed countries,in order to step out the“middle income trap”and realize the leap from a developing country to a developed country,it is the key to change economic development methods with technical innovations.It is proposed in the 19^th CPC National Congress Report that“innovation is the first driving force for development,which is the strategic support for construction of modernized economic system”.In order to promote enterprises to increase investment in research and development actively and improve technical innovation level,it is needed to improve governance structure of enterprises and formulate corresponding incentive measures,to solve the principal-agent problem caused by separation of ownership from managerial authority.In order to avoid the impact of the financial crisis in 2008 and the stock market disaster in 2015,this article selects the data of continuous six years during 2009-2014 of105 listed companies with active equity incentive and good growth in GEM,studies the impact of equity incentive on technological innovation of enterprises.The whole article discusses on four problems:Firstly,whether equity incentive promotes the increase of R&D investment;secondly,whether equity incentive increases innovation output;thirdly,whether equity incentive improves enterprise performance;fourthly,the mechanism of equity incentive affecting technological innovation.Concretely,the article includes research contents of the following aspects:Firstly,it includes research on theoretical and background analysis.The author arranges development history of similar incentive at home and abroad.In combination of the principal-agent theory,the residual claim theory,the human capital theory,the motivation theory,the author analyzes the theoretical basis of the impact of equity incentive on R&D investment,innovation output and corporate performance,and combs the development process of equity incentive at home and abroad.Secondly,the author adopts empirical analysis method to analyze the impact of the stock ownership incentive to scales of enterprises’investment in research and development.After control of endogenous factors,the author analyzes if stock ownership inventive promotes the increase of enterprises’investment in research and development;in addition,the author further researches on differences of different stock ownership incentive methods,terms and industrial analysis.Thirdly,This paper measures innovation output by patent applications and enterprise growth,analyzes the impact of equity incentive on innovation output,and analyzes the impact of equity incentive on R&D input-output efficiency by using stochastic frontier production function model.Fourthly,This paper empirically analyzes the impact of equity incentive on corporate performance,and differentiates whether there are differences in different incentive methods.Fifthly,This paper empirically analyzes the mechanism of the impact of equity incentive on enterprise technological innovation,and analyzes the relationship between equity incentive,R&D investment,innovation output and enterprise performance,as well as the impact path.The research conclusions of the article include the following aspects:Firstly,after the control of endogenous factors,stock ownership incentive promotes enterprises to increase investment in research and development.According to further analysis,on the aspect of promoting enterprises to increase investment in research and development,the incentive effect of restricted stocks is better than that of stock options,;It is also found that the longer the period of equity incentive is,the more favorable it is for enterprises to increase their R&D investment.In high-tech enterprises,the effect of equity incentive is more significant.Secondly,Empirical analysis of the impact of equity incentive on innovation output shows that whether measured by the number of patent applications or growth,equity incentive promotes the increase of innovation output.Further analysis shows that,compared with stock options,restricted stocks play a more significant role in increasing innovation output.In addition,the term of equity incentive has an important impact on the innovation output of enterprises.The longer the term is,the more innovation output of enterprises will be;in the equity incentive scheme,the higher the incentive proportion of core employees is,the more innovation output of enterprises will be.The empirical analysis of stochastic frontier production function model shows that equity incentive can improve the efficiency of R&D input-output.Thirdly,This paper empirically analyzes the impact of equity incentive on corporate performance,and finds that equity incentive significantly improves corporate performance,and the impact of equity incentive on corporate performance lags behind.Further analysis finds that,compared with stock options,restricted stock plays a more significant role in improving corporate performance.Fourthly,This paper empirically analyzes the mechanism of equity incentive influencing technological innovation,using the intermediary effect model and the typical case of INOVANCE,which is listed on the growth enterprise market,to confirm the mechanism of"equity incentive→R&D investment→innovation output→enterprise performance".The innovation of this paper is reflected in the following three aspects:Firstly,the research confirms the mechanism of equity incentive influencing enterprise technological innovation,clarifies the relationship among equity incentive,R&D investment,innovation output and enterprise performance,finds that R&D investment plays an intermediary role in the impact of equity incentive on enterprise innovation output,innovation output plays an intermediary role in the impact of R&D investment on enterprise performance,enriches the impact of equity incentive on enterprise technological innovation Path research literature.Secondly,when we study the impact of equity incentive on R&D investment,innovation output and corporate performance,we analyze the differences between stock options and restricted stock,and find that the effect of restricted stock incentive is better.The conclusion of this study is quite different from that of the western mature market.This paper analyzes the reasons based on the characteristics of China’s capital market and the practice of equity incentive operation.Thirdly,when we study the impact of equity incentive on innovation output,we use the tool variable of the average temperature of the registered place of enterprises to solve the endogenous problem of equity incentive and innovation output,and improve the estimation results.