Equity Incentive,Innovation Investment And Enterprise Performance Of GEM Listed Companies

Under the macro background of high-quality development of China’s economy and international science and technology game,the status of technological innovation is becoming increasingly prominent.For enterprises as the principal part of microeconomics,innovation activities are the key elements of their survival,value growth and success.However,as the actual operation right controller of the enterprise,senior managers will avoid innovation activities due to high investment and long-term risks for their own interests.As a long-term distribution method,equity incentive can effectively alleviate the business problems spring from the separation of two rights.The appropriateness of its design and the effect of its implementation will inevitably affect the decision-making behavior of executives,and finally feed back to the innovation investment and performance of enterprises.Firstly,this paper summarizes the relevant important research results of equity incentive,innovation investment and enterprise performance,then expounds the relevant theoretical basis,and analyzes the relevant current situation of GEM listed companies.Then,taking the GEM listed companies that implemented the equity incentive plan from 2010 to 2019 as a sample,based on the equity incentive contract structure,this paper selects three key structural elements of equity incentive: incentive intensity,incentive period and incentive conditions to study the relationship between executive equity incentive,innovation investment and enterprise performance.Taking the impact of the nature of property rights into account,this paper further explores the intermediary effect of innovation input between executive equity incentive and enterprise performance.Finally,it puts forward relevant suggestions for equity incentive and R&D innovation.This paper finds that:(1)High-intensity executive equity incentive and strict incentive conditions can promote the improvement of enterprise performance and innovation investment.(2)The increase of innovation investment has a positive effect on enterprise performance.(3)The equity incentive plan can promote the innovation of enterprises,and then improve the performance of enterprises.(4)Private enterprise innovation investment has a partial intermediary effect between executive equity incentive intensity and enterprise performance,and a complete intermediary effect on the relationship between incentive conditions and enterprise performance.In non-private enterprises,none of the contractual elements of executive equity incentive has the intermediary effect.