Study On The Effect Of Executive Stock Ownership Incentive On Enterprise Innovation Performance

In the era of knowledge economy,the ability of innovation is becoming more and more important to enterprises.As for listed companies,To cultivate the core competitiveness of the enterprise,the most effective way is to strengthen the company's technological innovation ability.The majority of listed companies tend to set up a set of innovative mechanisms within the company to improve the accuracy of innovation decisions and the rate of return on investment in innovation,however,the establishment and operation of innovation mechanism is affected by the incentive system,that is to say,the effect of equity incentive is related to the ownership concentration and ownership.In the research on the combination of ownership structure,ownership nature and technological innovation performance,domestic and foreign scholars are not very common,although there are a lot of empirical research on listed companies in this area,but,there are differences in the relationship between equity incentive and enterprise innovation performance.Therefore,on the basis of consulting and studying a large number of literatures,this paper makes a brief review of previous studies on equity incentive,and finds out the relationship between equity incentive and enterprise innovation performance,some scholars believe that the listed companies in the implementation of equity incentive is helpful to promote the improvement of innovation performance,but there are also some scholars have the conclusion is negatively correlated between the them,at the same time there are still scholars shows two is no obvious correlation between them.On this basis,combined with two factor theory,principal-agent theory and human capital theory to analysis,then,the empirical research is carried out by means of propensity score matching to reveal the impact of equity incentive on the innovation performance of top managers in listed companies,considering the ownership structure and the nature of the firm,the effect of equity incentive on firm innovation performance is studied.Finally,the paper uses the data of total assets return rate and net assets return rate to test the two variables,the results are consistent with the conclusion of the paper.After the analysis of Propensity Score Matching model,this paper argues that the implementation of equity incentive is helpful to promote the innovation performance of enterprises,the improvement of enterprise performance is also affected by the nature of the ownership structure and ownership concentration,compared with the state-owned holding enterprises and non-state-owned holding enterprises as well as the equity concentrated enterprises and the equity dispersed enterprises to analyze the impact of the implementation of equity incentive on enterprise innovation performance.The results show that the implementation of equity incentive can improve the innovation performance,in non-state holding enterprises,the effect of equity incentive on corporate innovation performance is significantly higher than that of state-owned enterprises;Equity concentration,the implementation of equity incentive is more important to improve innovation performance.Through an empirical study on Chinese listed companies to verify the conclusion of the study,for the listed companies in China to improve shareholder restraint mechanism,the executives of the equity structure optimization,improve the incentive mechanism,improve equity incentive system,cultivate the ability of technological innovation,provide theoretical basis and suggestions to enhance the core competitiveness of enterprises etc.