Study On The Relationship Of The Stock Option Incentive And Company Innovation

Innovation,as the strategic support for the modernization of the economic system in the new century,is the first driving force to lead the rapid economic development.Faced with the rapid development of industrial technological change and the great challenge of fierce market competition,if companies want to maintain their core competitive advantage,they must improve their innovation ability and innovation level.Because of the existence of principal-agent problems,as consignor shareholders seeking to maximize the company value,therefore attaches great importance to the innovation in the company,while the operator is seeking to maximize its own reward and the realization of self-worth,the interests of both sides is not consistent.So the operator does not take the initiative to promote innovation in the company management,how to motivate operators to support company innovation activities become the shareholder’s thinking.The design of innovation incentive mechanism in company is critical to the success of innovation,so the stock option incentive system comes into being.Stock option incentive as a kind of long-term incentive compensation performance system,bringing it into the company daily management,helps operators pay more attention to the long-term profitability of the company and improve the operator’s willingness to risk appetite,so it is an incentive system that effectively promotes the company’s innovation.In order to study the relationship between stock option incentive and company innovation in gem listed companies,this paper use the tend to score matching method and double difference model,based on the sample data of the gem listed companies that actually implemented the stock option incentive in 2012-2016,use the company to apply for invention patent quantity to measure company innovation and come to some conclusions.At the same time,in order to further analyze how stock option incentive promotes innovation,this paper will analyze the driving mechanism of stock option incentive to promote innovation from the perspective of risk bearing and incentive effect.Finally,the paper analyzes the influence of the proportion of stock option incentive scheme,the period of validity and incentive intensity on the innovation driving mechanism of stock option incentive plan from the micro perspective.It is concluded that the stock option incentive of gem listed companies can promote the innovation.In the aspect of stock option incentive to promote innovation drive mechanism,stock option incentive based on risk-taking effect promotes innovation.This is because the stock option incentive raises the risk appetite and the ability of the operator,so that the operator can have the incentive to choose the high-risk innovation projects.When considering the different elements of stock option incentive scheme,the period of validity is longer and incentive intensity is stronger,the risk-taking effect of stock option is more important to innovation.