Key Employee Equity Incentive,Innovation Output And Enterprise Performance

In the realistic context of global economic integration and rapid changes in science and technology,with the continuous intensification of market competition,the level of innovation capability has become a key factor in determining the success or failure of an enterprise,and it is also a manifestation of enterprise value,the innovation ability is expressed in the whole process of Innovation investment,innovation output,and transformation of innovation results.In the entire enterprise's innovation activities,as decision makers,executives mainly decide the innovation investment,but innovation investment can not fully guarantee the innovation output,under the circumstances that innovation investment is established,key employees are the direct participants and implementers of innovative projects,and their innovative skills and work enthusiasm are the key factors in determining innovation output,so the implementation of equity incentives for key employees must be conducive to corporate innovation,and then results in corporate performance.Therefore,this paper focuses on whether the implementation of key employee equity incentive will have a positive impact on the company's innovation output? What kind of key employee equity incentive plan is more reasonable? What is the internal mechanism between key employee equity incentive and enterprise performance? These researches have important implications for the success of corporate innovation projects in China.This paper selects all the A-share listed companies that have implemented key employee incentive in China from 2008 to 2016 as research sample,and empirically examines the relationship among key employee equity incentive,innovation output and enterprise performance,then provides some new ideas for studying the "black box" between equity incentive and enterprise performance.The study found that:(1)Implementing key employee equity incentive can promote the improvement of enterprise performance;the degree of key employee equity incentive is positively related to enterprise performance;and in the high-tech enterprises,the validity of equity incentive has a positive adjustment effect on the relationship between the degree of key employee equity incentive and enterprise performance.(2)Implementing key employee equity incentive can improve the company's innovation output,the degree of key employee equity incentive is positively related to the innovation output,but the validity of equity incentive have no adjustment effect on the relationship between the degree of key employee equity incentive and innovation output.(3)Innovation output has some mediating effects between implementing key employee equity incentive and enterprise performance,and innovation output also has some mediating effects between the degree of key employee equity incentive and enterprise performance.Finally,it is suggested that enterprises should increase the degree of emphasis on key employees,increase incentives for key employees,which will be conducive to steady and efficient development of the company.The research results of this paper not only enrich the research literature about equity incentive and company's innovation,but also provide guidance for enterprises to design equity incentive system,strengthen corporate governance,and enhance innovation capability.