On The Impact Of Equity Incentives On Innovation Input And Output Of GEM Companies

Chairman Xi pointed out that the core technology can not be begged,it must rely on self-reliance.Especially high-tech enterprises and entrepreneurial enterprises,innovation is the foundation of sustainable development of enterprises.However,under the principal-agent theory,the separation of ownership and management makes executives short-sighted and do not pay attention to the long-term development of enterprises.Under such circumstances,enterprises gradually try to implement long-term incentive plans for senior executives and core employees with the company equity as the tool,so as to make them become a community of interests with the enterprise,encourage senior executives to manage the enterprise from the perspective of long-term development of the enterprise,restrain short-sighted behaviors,and consider carrying out innovative activities.Therefore,how to use equity incentive to influence enterprise innovation investment is an urgent problem for enterprises to solve.In order to more accurately understand the current status of equity incentives and innovation investment of GEM companies and propose specific effective measures for reference,this paper analyzes the impact of different types of equity incentive plans on the company's innovation input and output in detail,and explores the development of suitable enterprises.Based on its own characteristics and the method of promoting the innovation and input-output equity incentive plan,a representative enterprise in the GEM is selected for comparative analysis,in order to propose effective countermeasures applicable to the entire GEM,and it provide reference for GEM companies to implement equity incentive plan and promote innovation input and output.Based on the analysis of case study method,this paper selects the three-phase equity incentive plan of Huichuan technology company and research its innovation input and output.Firstly,it analyzes the equity incentives and innovation investment of GEM companies,and explore the defects of their implementation of equity incentives,to summarize the impact of current equity incentives of GEM on innovation input and output.Secondly,it analyzes the content and implementation of the third-phase equity incentive plan of Huichuan technology company in detail,the innovation input and output before and after the implementation of the equity incentive plan,and the impact of equity incentives on innovation input and output.During the implementation of the equity incentive plan,Huichuan technology continuously adjusted the equity incentives according to the actual situation of the company,and exerted the impact of equity incentives on innovation input and output.At present,the GEM companies that implement the equity incentive plan occupy half of the market,and the incentive types are mainly restricted stocks.However,there are very few companies that have implemented more than two consecutive companies.Therefore,we hope to use case study to explore how to design a guiding equity incentive plan and prove enterprise innovation.Through the case study,this paper concludes that equity incentive has a positive impact on innovation input and output of GEM companies.Among them,the effect of implementing equity incentive plan with restricted stock is more obvious than stock option.Therefore,several suggestions are proposed to promote and improve the equity incentive on GEM and promote innovation.First,improve the capital market,improve the innovation enthusiasm of GEM listed companies,improve the sensitivity of market transmission mechanism,so as to give full play to the effect of equity incentive on GEM companies;Second,the current information disclosure of intangible assets on GEM is limited to land transfer right,patent right,etc.,and it should disclose the competitiveness of core products,the number of core R&D team and other innovation-related indicators.Improving the information disclosure about intangible assets and innovation on GEM will not only help investors understand the company's operating conditions,but also help management pay attention to the input and output of innovation,form a good habit of information disclosure,and timely discover the risks of enterprises;Third,the equity incentive plan is one of the means of strategy implementation,in writing before the equity incentive plan,the company needs to consider the future development direction,consider incentive object range,exercise or unlock the condition how to clearly reflect the company strategy,if does not consider the company strategy,play a role of the incentive of the equity incentive plan cannot,will be counterproductive,do more harm than good.Fourth,cultivate an innovative environment,which will promote the innovation of enterprise culture deep into the hearts of employees,so that employees from the inside out to take the initiative to carry out innovative activities,maintain innovative thinking.The fifth is to actively encourage GEM companies to implement equity incentive plans,especially restricted stock model.At the same time,GEM companies can add innovation related indicators into unlock conditions or exercise conditions,such as R&D projects,patents,intangible assets and other innovation output indicators,so that equity incentive can promote innovation more directly.