Research On The Influence Of Equity Incentive On Innovation Performance Of Z Company

The report of the 20th National Congress emphasizes that science and technology must be the first productive force and innovation the first motive force.It also emphasizes the role of enterprises as the main force of innovation,and brings into play the leading and supporting role of key scientific and technological enterprises,so as to enhance the effectiveness of investment in science and technology and stimulate innovation.However,in the course of enterprise innovation activities,on the one hand,because of the ubiquity of principal-agent problems,managers take a risk-averse attitude towards innovation activities with high risk and investment in order to pursue their own interests.On the other hand,unreasonable institutional conditions also make the core staff lack the motivation to innovate.The combination of these problems restricts the efficiency of enterprise innovation.The equity incentive,known as "golden handcuffs’ ’,is one of the effective measures to solve the existing problems in enterprises.The essence of equity incentive is the process of promoting technological innovation with institutional innovation.Through the optimization of the institutional environment,we can create a good external environment for technological innovation and provide it with an institutional guarantee.Therefore,it is an important problem in the new normal of economy to design a scientific and effective equity incentive scheme to encourage the incentive object to carry out technological innovation and improve the innovation performance.This paper takes enterprise Z,which represents the communication equipment industry,as the research object,and explores the impact of equity incentive on innovation performance by combining the theories of principality,human capital,technological innovation and incentive,using literature analysis,case study and comparative analysis.To this end,this paper firstly combs the related literature on the relationship between equity incentive and enterprise innovation,then analyzes the mechanism of equity incentive to innovation performance,divides the role of equity incentive to innovation performance into three stages: innovation input,transformation and income generation.The study found:(1)In general,the implementation of equity incentive can improve the innovation performance of Company Z,but in particular,the incentive effect of the last three phases is significantly better than the first phase;(2)In the innovation investment stage,the incentive of stock option mode can effectively improve the innovation ability of the company,while in the innovation transformation and income generation stage,the restrictive stock incentive mode,which is mainly for core employees,can promote the innovation performance of the company,and the enhancement of this role plays a positive role in the positive state of the incentive object during the innovation activities.(3)Equity incentives for both senior executives and core employees can promote innovation efficiency,but equity incentives for core employees are more significant.The research shows that choosing the incentive mode suitable for the development of the enterprise,reasonably determining the scope of the incentive object,scientifically setting up the appraisal index of different incentive object and reserving stock can promote the realization of the innovation performance of the enterprise.