The Stock Option Incentive,Board Characteristics And Firm Innovation Output

In the highly competitive international economic environment,strong innovation capability will become an important weapon for enterprises to stand out from the competition.Compared with innovation input,the level of innovation output can measure the innovation ability of enterprises more effectively.However,due to the high investment,long-term,high-risk nature of innovation activities,operators often avoid the problem of principal-agent problems.Therefore,it is particularly important for company shareholders to cultivate effective incentive mechanisms to promote continuous innovation.The option incentive system just fits this feature,which can align the self-interest of the incentive object with the company's interests,so that the option holders can devote themselves to innovative activities that enhance the company's long-term profitability and improve the level of innovation output.At the same time,the option incentive system is an important means of corporate governance,and the board of directors is the core of corporate governance,so it is necessary to examine the effectiveness of the option incentive effect from the perspective of the board of directors.In the paper,we will study the option incentive plan and the company's innovation output based on the perspective of corporate governance.The research questions include the following four:First,will the implementation of the option incentive plan by China's A-share listed companies promote the innovation output of enterprises?Second,what is the difference in the impact of different option incentives on innovation output?Third,what is the impact of the characteristics of the option incentive contract on the incentive effect of the option?Fourth,what is the impact of board characteristics on the incentive effect of options?Firstly,we select 298 A-share listed companies that implement the option incentive plan in 2009-2015 as the research object,and uses the fixed effect method to carry out regression analysis on the unbalanced panel data.The study found that:First,the implementation of option incentives by listed companies can effectively improve the level of innovation output of enterprises;Second,compared with executive option incentives,core employee option incentives can promote innovation output of enterprises,and the incentive intensity of core employee options is greater.The level of enterprise innovation output is also higher.Third,the strict exercise performance conditions and the longer-term option contract characteristics can promote the effect of option incentives on innovation output,but the difference in exercise ratio setting does not affect option incentives.Fourth,the larger the size of the board of directors,the higher the proportion of independent directors,the more frequent the number of board meetings,but the effect of option incentives;but the greater the short-term salary incentives of the board,the more the option incentives can be promoted;The first-class feature does not affect the incentive effect of the option.