Research On The Impact Of ZTE's Equity Incentives On Corporate Innovation Capabilities

In the era of rapid development of knowledge economy,the role of science and technology in promoting economic growth is increasing day by day.Innovation has become a core factor affecting competitiveness,and it has gradually gained the attention of enterprises,and technological innovation cannot leave people as a key factor.However,there are widespread agency problems in modern enterprises.Managers and R&D personnel are reluctant to engage in high-risk,high-input R&D activities without the interest-driven situation.They cannot actively invest in corporate innovation activities,and equity incentives have The characteristics of mitigating agency conflicts are adopted by more and more enterprises.Compared with Western countries,China's equity incentive implementation process is relatively slow,but through the government's continuous improvement of relevant institutional laws,the progress of China's equity incentives has gradually matured,and the number of listed companies that implement equity incentives has been increasing.ZTE is a veteran enterprise in the domestic communications equipment manufacturing industry.In 2006 and 2013,it launched two equity incentive plans,which caused great concern.Based on the theory of principal-agent theory,human capital theory and management incentive theory,this paper first analyzes the impact mechanism of equity incentives on enterprise innovation,and how the design of incentive schemes affects the effect of equity incentives on innovation.Then use the case study method,starting from the two equity incentives of ZTE,and combining with the listed companies in the same industry,the company will analyze whether the equity incentives will be ZTE from three aspects:innovation incentive ability,innovation realization ability and innovation diffusion ability.The ability to innovate has an impact.The research results show that ZTE's two equity incentives have a significant positive effect on corporate innovation in the short term,and in the long run,the effect is not significant.In contrast,the equity incentives of FiberHome Communications have a long-term promotion effect on corporate innovation.Therefore,this paper analyzes the reasons for the differentiation of the equity incentive innovation performance of the two companies,and finds that ZTE has a shorter incentive period in the design of equity incentive schemes.Problems such as imperfect design of exercise rights,low price of grants,and improper selection of incentive objects.In this regard,this paper puts forward suggestions for promoting the innovation performance of corporate equity incentives.ZTE can combine the standardization of performance incentives with the performance evaluation and the proportion of exercise rights.Set up measures to optimize the equity incentive plan.The research in this paper has positive significance for exploring what kind of equity incentive plan has a more significant impact on corporate innovation.