Research On The Relationship Between Equity Incentive And Corporate Innovation Performance

Innovation plays an increasingly important role in a country's economy.With the disappearance of the demographic dividend,China's economic,which relied on cheap labor to carry out simple low-value-added processing,has gradually lost its competitiveness.Strengthening the ability of independent innovation and speeding up the adjustment of industrial structure are related to the future development of China's economy.Enterprises are the main body of micro-economic activities and the improvement of the overall innovation competitiveness of the country depends on the improvement of the innovation ability of enterprises.Equity incentive is one of the most important systems to solve the agency problem.In China,whether the equity incentive plan issued by listed companies can effectively improve the innovation performance of enterprises is a matter of concern.This paper studies the relationship between equity incentive and enterprise innovation performance from the perspective of equity incentive scheme elements and external institutional environment.Firstly,this paper reviews the relevant literature about equity incentives and innovation performance of enterprises,and puts forward relevant hypotheses.In empirical analysis,this paper uses the data of listed companies and patent databases from 2009 to 2014 and manipulates data by using propensity score matching method.The research shows that when the exercising conditions are strict or the proportion of exercising rights are high,the level of innovation performance of enterprises is higher.In addition,the fierce product market competition has a positive and significant impact on equity incentives.When the market level is high,the protection of producers' right is good and the legal environment is good,the equity incentive effect is more obvious.Finally,this paper puts forward corresponding policy recommendations.Our government should create an external environment conducive to equity incentives such as establish an equity incentive mechanism to encourage innovation,steadily improve the degree of regional marketization,strengthen producer protection and improve the legal level.