Research On Equity Incentives Of Listed Companies On Enterprise Technology Innovation

Manufacturing industry is an important part of the national economy,and the technological innovation capability of the manufacturing industry is also reflected in the country s comprehensive strength.Equity incentives are widely used in China s manufacturing enterprises.Studying the relationship between equity incentives and technological innovations can provide a theoretical basis for enterprises to strengthen their own management and improve technological innovation.China s research literature on equity incentives and technological innovations is mostly concentrated at all listed companies or a specific listed company,and there is less research focused on a certain industry.Equity incentives are widely used in manufacturing industry in China.Studying the impact of equity incentives which used in manufacturing enterprise on technological innovation can provide theoretical basis in the field of business management and innovation research for Chinese manufacturing enterprises.This paper firstly expounds and summarizes the background of the application of equity incentives,technological innovation and business performance in the domestic and foreign literatures,and combs the relevant theories.This paper theoretically elaborates the mechanism of the impact of equity incentives on technological innovation of enterprises;secondly,this paper uses the data of listed companies in 2009-2017 to introduce and analyze the manufacturing industry from two aspects:implementation of equity incentives and technological innovation;next,this paper build a fixed-effects model and use the non-balanced panel data of manufacturing industry in 2009-2017 for regression analysis.The research finds that equity incentives have a significant positive impact on corporate technological innovation;restrictive stocks can stimulate enterprise technological innovation more than stock options;equity incentives for core employees intensity have a significant positive impact on corporate technological innovation;implementation of equity incentive schemes can have a significant positive impact on sales expenses.Analyzing the theoretical and empirical findings,this paper puts forward the following suggestions:(1)Encourage enterprises to incorporate equity incentives into the compensation system;(2)Encourage enterprises to choose appropriate equity incentives according to their own circumstances;(3)Enterprises should reasonably expand the scope of incentives and attach importance to core staff incentives;(4)Chinese government should accurately support technological innovation of enterprises;(5)Improve the capital market supervision system and reduce the loss of incentive effectiveness.