Relationship Study Of Equity Incentive Of Core Employees,Enterprise Innovation And Financial Performance

With the upgrading and improvement of the management system,the emergence of equity incentive has greatly alleviated the principal-agent problem,helping enterprises achieve rapid development.China is passing through economic transformation and structural adjustment now.Science and technology has gradually become the first engine of economy.Chinese listed companies have to fully excavate the endogenous energy of innovation,arouse the creative vitality of key employees,and enhance financial performance,in order to make themselves invincible.Therefore,this paper shows solicitude for the effect on core employee equity incentive on innovation and financial performance,and focuses on the intermediary effect in the above process of action transmission.It also makes a thorough inquiry into this transmission mechanism to ameliorate the level of financial situation through equity incentive for core employees,in order to optimize the equity incentive scheme and help Chinese enterprises improve financial performance and achieve flourishing development in the long run.Therefore,the research of this paper has important realistic meaning.This paper uses stata 16.0 software.This paper not only analyzes the full sample of GEM listed companies that implemented equity incentive for core employees from 2015 to 2020,but also studies the influence of equity grant mode,enterprise industry characteristics and property right heterogeneity on the above intermediary effect.Combined with the previous data results,this paper proves:(1)Enhancing the equity incentive intensity of core employees will positively ameliorate financial performance;(2)Enhancing the equity incentive intensity of core employees will positively optimize enterprise innovation;(3)In the action mechanism of equity incentive and financial performance of core employees,enterprise innovation has some intermediary effects;(4)The granting of restricted stock makes the intermediary factor of enterprise innovation play a more significant part in the mechanism of stock-based compensation of core employees and financial performance;(5)In high-tech enterprises,the intermediary influence of enterprise innovation in the mechanism of stock-based compensation of core employees and financial performance is more significant;(6)In non-state-owned listed companies,the intermediary effect of enterprise innovation in the above impact mechanism is more significant.According to the analysis,this paper advances following proposals:(1)Enterprises need to think highly of the core employees;(2)Enterprises should further optimize the equity incentive mechanism;(3)The government and enterprises themselves should actively create an innovation environment for core employees.This paper creatively studies the intermediary mechanism of the impact of core employee equity incentive on financial performance under different equity grant methods,industry characteristics and property rights.Its conclusions and suggestions provide a worthwhile reference for Chinese enterprises to optimize equity incentive schemes and improve their innovation ability and performance level in the future.