Equity Incentive, Technical Innovation Investment And Financial Performance

At present, the development of China’s economy entered new normal, from high speed of growth to the general speed of growth, driven by factors, investment, to innovation. The innovation become the driving force of economic development and the new engine. In the past couple of years, the company, especially small and medium-sized companies, in order to improve the market competitiveness, increase technical innovation investment, but has not synchronous improve financial performance. Investigate its reason, in nearly three years,small and medium-sized enterprises senior executive occurs Non normal turnover frequently, On-the-job executives often sacrifice company’s long-term interests to gain personnal income which has bad influence on technological innovation activities, ultimately has negative impact on the financial performance of the enterprise.thus part of the shareholders and the management of small and medium-sized enterprises began to think about how to create a relatively suitable system environment, equity incentive of this innovative system cause the extensive concern of the small and medium-sized enterprises. As a golden handcuffs, can it retain talent? whether the implementation of equity incentive can improve the small and medium-sized enterprise technology innovation activities efficiency or not? Obviously, straighten out the relationship of equity incentive, technology innovation investment and financial performance become a question which need be ponder deeply over by small and medium-sized enterprise shareholder and managementThe small and medium-sized enterprises is the main force of economic development in our country, according to the statistics, small and medium-sized enterprises (smes) account for more than 70% of the total number of enterprises,if coupled with miniature enterprise, then can reach 90%. Small and medium-sized board and gem listed companies is a typical representative of the small and medium-sized enterprises, so this article choose which as samples, according to the theory of equity incentive theory, technological innovation, the new system of organization theory, gathering 2010-2012 small and medium- sized board and gem listed company financial data, using panel data model, doing empirical research of relationship of the equity incentive, the technical innovation investment and financial performance, finally finding out the following conclusions:(1) the equity incentive has significantly positively influence on financial performance, particularly in the high and new technology enterprises; (2) the technology innovation investment and financial performance is related, but not statistically significant, the empirical results according grouping show that the high and new technology enterprise group of r&d investment has significant negative correlation on financial performance; (3)Overall, the the equity incentive play a certain role adjustment on the relationship of the technology innovation investment and financial performance, Specific to the various index, equity incentive plays a role in regulating the relationship between the education level of employees and financial performance, between R&D and financial performance.technical. Due to the low proportion.personnel has no good cooperate with equity incentive.