Equity Incentives And Corporate Technology Innovation

In October 2017,the report of the Nineteenth National Congress clearly stated that "innovation is the primary driving force for development and the strategic support for building China's modern economic system." The main trend of China's economic and social development in the future is scientific and technological innovation.China's important productivity.Enterprises are the main body of the development of China's national economy.Technological innovation is the secret for enterprises to win in the market and the core competitiveness of enterprise development.Therefore,more and more entrepreneurs attach importance to technological innovation.The most intuitive manifestation of an enterprise's technological innovation is its investment in R & D activities.The total amount of R & D investment and R & D investment strength are important indicators for evaluating the development of an enterprise's technological innovation,which can reflect the degree to which an enterprise attaches importance to technological innovation.Enterprises conducting research and development activities have the characteristics of large capital investment,long investment cycles,uncertain research results,large risks,and lagging benefits from research and development output.Therefore,in "separation of two rights" companies,operators may Realize one's own personal interests,pursue short-term corporate benefits and take a negative attitude towards corporate R & D activities,make decisions that are not conducive to corporate scientific and technological innovation activities,and hinder corporate growth.The problem of information asymmetry caused by the separation of the ownership and management rights of the enterprise has led to the inability of the owner to implement effective supervision of the management.Therefore,how to reduce this opportunistic behavior of managers and effectively mitigate the conflict of interest between business owners and managers has attracted much attention from scholars.Equity incentive is a generally recognized and effective measure that is beneficial to the coordination of conflicts of interest between owners and operators.It enables the managers of an enterprise to actively participate in the company's management activities from the perspective of shareholders,and helpsthe owners to overcome the operators.Opportunistic behavior that deviates from the long-term development strategy of the enterprise.Under the guidance of basic theories such as principal-agent theory,incentive theory,and technological innovation theory,this paper analyzes the status quo of equity incentives and R & D investment in China's listed companies through a review of the current research situation at home and abroad.Hikvision,the leader of the security monitoring industry,was selected as a case.After introducing the basic situation of Hikvision,the two equity of Hikvision in 2012 and 2014 were analyzed through statistical analysis and comparative analysis.The incentive plan was compared and analyzed,and the impact of the company's equity incentive plan on corporate innovation was further analyzed from the perspectives of R & D personnel,R & D investment,and R & D output.Through comparative analysis,the following conclusions are drawn: The implementation of Hikvision's equity incentive plan has attracted corporate talents and stabilized the company's core technology research and development team.The executives determine the strength of the company's innovation investment.In the case analysis,we can clearly see that the implementation of equity incentive objects including executives has significantly improved the company's investment in research and development and innovation.In general,the implementation of equity incentive plans has a significant role in promoting technological innovation activities of enterprises,especially the 2014 incentive effects of equity incentive plans.