The Impact Of Phantom Stock Option Plan On Innovative Behavior

China’s private economy is growing rapidly. It has played an important role at providing employment opportunities, optimizing the ownership structure and improving the promotion of economic growth. However, at behind of the performance of the private economy booming mo-mentum there are a lot of practical problems faced by private enterprises, such produce goods of less value, cut-throat competition, quality issues, and so on. To resolve the plight of privateenter-prise development, there are many issues that need attention, but to enhance the technological innovation capability is the key, especially for the second venture of private enterprises which must take innovation as an important means of development and regard enhancing their employees’ innovation power as the essence of innovation. Nowadays, there are many private companies in the power of innovation to inspire employees to try a lot, such as updating equipment, implementation of a comprehensive salary, bonus distribution optimization and so on. The cost of inputs is quite substantial, but far short of the expected effects of innovation. Phantom Stock Option Plan provides for private enterprise with a new way to solve the bottleneck of innovation.In order to investigate whether the Phantom Stock Option Plan can inspire innovative beha-vior of employees, paper takes core staff of private enterprises as the target group to construct the phantom stock options plan and innovative behavior variables as a causal hypothesis model, and introduce creative self-efficacy as regulated variables into the model. The following conclu-sions was drew:the implementation of phantom stock options had significant positive effect as to key employees’ innovation behavior of its two dimensions; creative self-efficacy of the core staff of the first phase of innovative behavior-behavior generate innovative ideas have a significant role in promoting, but for the second phase-the role of implementing innovative ideas behavior is not obvious; creative self-efficacy plays a part in the process of regulation. This shows that the phantom stock option plan can to some extent solve the core staff of private enterprise innova-tion power shortage, reasonable and appropriate phantom stock option can stimulate more inno-vation performance of core staff. What should be noted is that too much emphasis on strengthen-ing internal factors key employees may not have a positive effect on the excitation process. To give full play to the role of a phantom stock option plan needed to start from a perfect incentive contract and internal governance improvement.