The Effect Of Equity Incentive On Innovation Of Listed Companies

Since 2005,China's listed companies have begun to announce and implement equity incentive policies in accordance with the “Implementation Measures for Equity Incentive Management of Listed Companies”.At present,China's listed companies implement a total of 3 equity incentive plans,including restricted shares,stock options and stock appreciation rights.Among them,restricted stock and stock option are the main incentive methods for listed companies in China.At present,the Chinese government requires enterprises to take innovation as the driving force and improve the industrial structure to achieve long-term sustainable development.To improve the innovation ability of enterprises,enterprises need to strengthen internal governance and provide incentives for business operators and employees.The equity incentive model is being implemented by more and more listed companies.The study on the impact of the equity incentive model on enterprise innovation implemented by listed companies in China can provide reference for listed companies in China and help them better improve their innovation ability.This paper selected China's a-share listed companies from 2005 to 2012 as the research object,and analyzed and compared the nature of various equity incentive methods after consulting and combing relevant literature.Then descriptive statistics are conducted on the collected data of listed companies,and empirical research is conducted using the propensity score matching method and the difference-indifferences model.In the empirical study,the first three incentives for listed companies to study the impact of innovation results.Secondly,it studies the influence of other factors on the incentive effect,including state-owned enterprises and non-state-owned enterprises,the proportion of incentives for senior executives and non-senior executives,and various duration factors in the plan.After that,the incentive effects of the two main incentive methods are compared.Finally,the effects of the three types of incentives on the short-term income of enterprises are studied for comparison with the effects on innovation.The results show that the three kinds of equity incentives can effectively improve the enterprise's innovation ability and short-term income,among which the incentive effect of stock options in innovation and income is significantly stronger than restricted stock.And the incentive effect of equity incentive in state-owned enterprises is much higher than that in non-state-owned listed companies,and there is not much difference between the proportion of corporate incentive executives and non-executives.Unlocking period and waiting period in equity incentive scheme also have positive effect on incentive effect,while unlocking period and exercise period have no obvious effect.