The Equity Incentive Of Management And Long-Term Investment In Small And Medium Hi-Tech Enterprises

The separation of the modern enterprise managers and owners,the inconsistency of their economical function and the asymmetry of information are easy for executivesto have short-sighted behavior and Moral hazard problems,which brings enormous losses to the enterprises and becomes a problem plagued people a lot.With the development of the Principal-agent Theory,and drawing some ideas of Incentive Theory,people find that equity incentive is an effective way to solve this problem and the equity incentive have been adopted by many enterprises.Especially for the majority of small and medium hi-tech enterprises,because they are in the development stage or growth stage and depend highly on high-tech,they need to use equity incentive to avoid moral hazard and talent lost.Gradually,with the development and wide application of equity incentive,it has been found whether the incentive intensity which is the core of equity incentive plan and other elements in equity incentive plan are reasonable designed or not directly determine the effect of the equity incentive.According to the above premise,the study takes the small and medium hi-tech enterprises as the research object,the contract elements of equity incentive as the research perspective and the enterprise long-term investment as a measure of the effect of equity incentive.Firstly,this paper analyses the current situation of the small and medium hi-tech enterprises equity incentive and long-term investment from overall.Secondly,this paper horizontally compared the effect of each contract elements on long-term investment between different enterprises.Finally,this paper chose iFLYTEK as a typical example and longitudinal comparing the effect of each contract elements in equity incentive plan on long-term investment by case analysis.All of the above results showed that Chinese small and medium hi-tech enterprises have a poor performance on contract elements of equity incentive and the proportion of the number of granted shares to the total number of enterprise's shares is better than the ratio of the value of granted shares to executive compensation in evaluating incentive intensity.High incentive intensity,moderate incentive condition and long-term incentive will promote long-term investment,so as to better play the role of equity incentive.At the end of this paper,according to the analysis conclusion,I put forward some reasonable suggestions from the enterprise internal(contract elements of equity incentive angle)and external(capital market angle),providing guidance and help for the medium and small high-tech enterprises in the implementation of equity incentive.