Equity Incentive,R&D Configuration And Corporate Performance

R&D optimization configuration is the basis for the success of the company's innovation.It is to enhance the company's core competitiveness and profitability of the important guarantee.Due to the high risk of R&D configuration and the lag of income and other characteristics,the "two-power separation" of the modern company often lead to agents to reduce the company's R&D configuration efficiency and corporate performance opportunistic behavior in the multi-layer proxy relationship and information asymmetry environment.Many scholars pay attention to that how to correct the agent's opportunistic behavior and crack the company R&D configuration inefficient.Most of the academic researches mainly use the empirical analysis method,but the case analysis is insufficient.Huawei Technologies Co.,Ltd.("Huawei")increased sales from more than 1 million yuan in 1987 to 395 billion yuan in 2015,surpassing the global communications equipment manufacturing giant Ericsson,becoming the world's largest communications equipment manufacturers.Why can Huawei make such a great success? The reasons behind its success has been focused by the scholars.At present,most scholars carry out a wide range of analysis from the company's talent,technology,production and sales of different perspectives.But the analysis of the relationship between the equity incentive,R&D configuration and corporate performance analysis is inadequate.Based on this,this paper takes Huawei as a classical case,takes the principal-agent theory,human capital theory,residual claim theory,super-property right theory and tech nological innovation theory as the theoretical basis,then uses normative research and case analysis method to analyze the relationship between Huawei's equity incentive R&D configuration and corporate performance,summarized and analyzed.The research shows that:(1)The rapid growth of Huawei's performance is because of the optimal allocation of R&D resources,and the optimal allocation of R&D resources is derived from the e quity incentive of its employees.(2)The most important reason for Huawei's success is scientific design of incentive system,more than anything else is reasonable incentive system arrangement of executives and core technical staff equity.(3)Equity incentive transfer the company executives and core technical staff from the identity of the employee to the shareholder status.Equity incentive encourages executives and core technical staff to actively assume research and development risks,optimize R&D resource allocation,improve R&D input and output efficiency and enhance corporate performance.(4)Executive equity incentive to encourage executives to increase the total R&D investment gross,optimize the R&D investment structure and regional allocation of R&D resources;corete chnical staff equity incentive to enhance the staff's sense of belonging,encourage the core technical staff to improve R&D input and output efficiency.The combination of the two factors has sharply increased company's innovation,competitiveness and profitability.The conclusion of this paper not only further enriches the relevant theoretical literature of equity incentive,R&D investment and corporate performance,but also provides theoretical guidance and experience for other enterprises in order to improve the innovation ability and profitability in the design of equity incentive system.