The Influence Of Equity Incentive On Innovation In The View Of Environmental Uncertainty

Under the new economic normal background,new and old kinetic energy conversion has become the main mode for China's manufacturing enterprises to achieve technological progress and economic growth.The key to the conversion of new kinetic energy lies in technological innovation.As the cell of the national economy,the ability and level of enterprises innovation directly determine the development of the national economy.However,the characteristics of technological innovation are long cycle,heavy investment and high uncertainty.As a rational economic manager,the preference of the manager for the existing earnings restricts the enthusiasm for carrying out innovative activities.Therefore,the key to solve the problem is designing an incentive mechanism to solve the short-sighted behavior of managers.The proposal of equity incentive system is based on this idea.By allowing managers to hold shares of the company,managers and shareholders share risks and benefits,consider the company's development in the long run,increase the company's innovative inputs and output,and promote the long-term development of the company.The individual behavior of the enterprise is the product of the combination of the individual and the environment,that is,the individual behavior is affected by both internal and external factors.In recent years,China's economic environment has been repeatedly turbulent.As the corporate governance and incentive mechanism,the effectiveness of equity incentive must be influenced by the environment.Therefore,this article analyzes the different influences of equity incentive on the innovation activities of enterprises from the perspective of the environmental uncertainty that the enterprises are facing.In addition,this article further subdivides the institutional environment that enterprises face and explores the regulatory role of environmental uncertainty on equity incentives and innovation under different degrees of marketization.The innovation activities of enterprises include innovation investment and innovation output.In this paper,we measure the innovation of enterprises from the aspects of innovation investment and innovation output.The main research questions include the following three aspects: The impact of equity incentive on firm innovation input and innovation output;Does environmental uncertainty play a regulatory role in equity incentive and enterprise innovation;Does the process of marketization affect the regulatory role of environmental uncertainty.In this paper,the research object is China's manufacturing listed companies from 2010 to 2016,we use of panel Tobit regression and panel fixed effects model to explore the impact of the implementation of equity incentive programs on innovation input and innovation output respectively.The results show that both the innovation input and the innovation output of the firms that implement the equity incentive increase obviously;the environmental uncertainty that the firms face can inhibit the promotion of the equity incentive.When the level of environmental uncertainty is high,the incentive effect of equity incentive on innovation input and innovation output weakened.In addition,this paper divides the samples into groups according to the level of marketization in the region where the enterprises are located.It finds that when the enterprises are in a highly marketized area,the effect of environmental uncertainty on the inhibition of equity incentives to promote innovative output is weakened.In the part of robustness test,this paper tests the endogenous problems between equity incentive and firm innovation by using the tool-variable method.The propensity score matching and transformation model are used to verify the robustness of the results.The conclusion of this paper deepens the research on the relationship between equity incentive and enterprise innovation.It enriches the research results on the influencing factors of enterprise innovation.The research results provide important theoretical basis for manufacturing enterprises to make rational use of equity incentive policies and effectively promote enterprise innovation,and also provide policy support for regulatory authorities to further improve the equity incentive system and promote the implementation of equity incentive system.