A Study On Incentive Effect Of Innovative Enterprise Executives Equity

Innovation ability is the concentrated expression of the competition between nations and the enterprises in the today’s era.The 18 th CPC National Congress put forward the implementation of the strategy of innovation driven development,in order to promote the construction of innovation oriented country.Compared with traditional enterprises, innovative enterprises have independent innovation and the advantages of continuous innovation, constantly as the main body of enterprise innovation, become the important force to promote the economic development of our country technology.Executives as a leader in innovative enterprises, some decision is of great significance to the development of the company, will not only affect the current operating performance, and also has a key role to its long-term fate.So, how to effectively motivate innovative enterprise executives, become an important issue in the development of its.As an innovative incentive mechanism,equity incentive has a long-term incentive effect on reducing the agency costs and improving the company performance, but also for enterprises to attract and retain the talent, give full play to the company executive creative.But the equity incentive is a double-edged sword, it also produces some negative influence, allowing executives to make self-interest behavior of damage the interests of the company.Therefore, whether equity incentive can really play a role of incentives in our country, especially under the background of building an innovative country in China, equity incentive can play a role of incentives in the innovative companies remains to be studied.At first, this paper respectively from two aspects: agency costs and corporate performance of combed the equity incentive effect existing research results,and then Concepts of innovation enterprise executive equity incentive and theoretical basis are described,carried out a statistical analysis on the implementation of equity incentive situation in China’s GEM Listing Corporation, find out the existing problems.Finally, choose the GEM Listing Corporation as the research sample,using empirical analysis methods to verify the innovative listing Corporation equity incentive for executives incentive effect.In this paper, the conclusion was based on the empirical results:(1) the equity incentive behavior can effectively reduce the agency problem and agency costs;(2) the equity incentive behavior can effectively motivate executives to improve business performance;(3) the equity incentive effect exists interval, in a certain range moderately improve the level of equity incentive, helped give full play to the equity incentive effect;(4) at the present stage, executives equity incentive levels of innovative corporate is low, appropriate incentives to enhance the level of senior executives, can reduce agency cost, improve the performance of the company.In summary, the equity incentive plays a role in the innovation incentive of enterprises in our country, help to promote the innovative enterprises sustainable development.