Core Employee Equity Incentive And Innovation Output

In the era of knowledge-driven economy,innovation is an important strategy to support the sustainable development of enterprises.Human capital is the driving force of the enterprise innovation.How to effectively improve the internal governance mechanism and explore the potential of the human resources?The answers to these questions became enterprise policy makers increasingly concerned topic.On Jan lof 2016,China securities regulatory commission promulgated the measures of management of listed company equity incentive(trial),which marks the equity incentives practice in our country for the first time into the regularized orbit,enriches the enterprise compensation methods and supports the internal incentive system construction.For the past few years,alonging with the enquity incentives related supporting policies continuously improved and refined,the implementation of equity incentives of listed company quantity present a spurt of growth.Until December 31,2016,there have been 961 companies announcing or implementing the equity incentive plan(data from CSMAR database).Executives and core employees are two main targets of equity incentive schemes.They are all closely related to the innovative actions but assume different obligations.Executives are responsible for strategic deployment,management,supervisionand the allocation of resources,their effect is more reflected in the innovation investment.While the non-executive employees who Possess professional knowledge,master the key technology and participate in the whole development process are the direct performers and emplementors.Their level of effort and work efficiency will directly affect the innovation output under the established innovation investment.Previous studies of equity incentive mostly focus on the managerial incentives.The related incentive effect evaluation is unavoidably biased.We think it is necessary to bring all of them into the same framework,extend shareholder-executive dual principal-agent chain,review the agent cost of core employees in innovative activities.In this way,we can further study the equity incentive effectiveness under the sharehoder-executive-employee corporate governance framework and restore the complete quity incentive effects on corporate innovation.Famous management master Ducker pointed out that "knowledge is a kind of high grade resource,knowledge worker is the precious wealth,knowledge workers must be considered as assets rather than the cost,an important task of management is to preserve the asset and play its role."His viewpoint support mportant status of core employee in the company again.How to motivate employees to make long-term human capital investment,avoid the outfow of talents become the important propositions for the sustainable and healthy development of enterprise.The main body of innovation is men.Innovation activities going well or not depends on multilateral coordination.Executives and employees is about resources put and use.Internal staff is about knowledge transfering and sharing.The complexity of innovation incentives determines that it is affected by multiple factors.Equity incentive plan design is not standardized.In terms of solution set,only ifwe focus on the employees' psychological and behavior characteristics,clarify the interests and behavior motivation of all parties,can we avoid the efficiency loss in the process of innovation to the greatest extent,improve the probability of successful research and development,achieve the purpose of the equity incentive.So we didn't stay rest on studying the relationship between core employee equity incentive and the innovation output.,instead we introduce the human capital theory into the research framework.From the perspective of equity incentive plan design,we explore the logic of core employee equity incentive effects on innovation output in depth.Specifically,weconsider the influence of motivation universality,executive-employee incentive intensity difference and incentive validity on the equity incentive effectiveness,in which we can understanding the decision-making psychologyof employees in different conditions.The management may be more concerned about these results.In this paper,on the basis of existing research,we expound the core employee equity incentive effects on innovation output and further subdivide the research sample,extend the research content from the perspectives of equity incentive plan design.The results show that the implementation of the core employee equity incentive in high and new technology companies can effectively promote enterprise innovation output,the equity incentive intensity is significant positive correlated with the quantity and quality of the innovation output.In terms of equity incentive plan formulation,compared with the equity incentive schemes for the specific employee,of large gap between executives and employees incentive intensity,with short incentive validity,the schemes which is broad-based,of smaller gap between executives and employees incentive intensity,with longer incentive validity can achieve better incentive effect.The possible innovation and contribution of this paper is mainly manifested in the following two aspects:first,the domestic existing research on equity incentive focused more on executives,neglected the core staff is an important incentive target,which leads to the equity incentive effect on enterprise innovation is not comprehensive;This article selects high and new technology enterprise as main innovation body,extends the incentive object,incorporats the core employee and executives equity incentive into the same analysis framework,which is the supplement of the exsiting research.Second,we introduce the incentive theory and the theory of human capital into equity incentive research,and then examine the universality,executive-employee equity incentive intensity difference,validity on equity incentive effectiveness at the employees' psychological level,which broaden the research scope of the equity incentive effectiveness,meanwhile provide the theoretical support and empirical evidence for the design of equity incentive system as well as legislation.Structure of this paper are arranged as following:the first part is the introduction;The second part is the literature review;The third part is the theoretical basis;Th fourth part is the theoretical analysis and the research hypothesis;The fifth part is the empirical research design;The sixth part is the empirical results and analysis;The seventh part is the conclusion and recommendation.