Research On The Effect Of ESOP On Enterprise Innovation Performance

Enterprise innovation is an important driving force to promote the sustained growth of internal economy and improve the external competitive advantage.The report of the 19 th National Congress of the Communist Party of China clearly proposes to build China into an innovative country.Therefore,actively promoting enterprise innovation is the only way to achieve high-quality development.As the key link of innovation,human capital is one of the important ways to promote innovation and realize enterprise innovation performance by stimulating employees’ enthusiasm,potential and creativity.Employee stock ownership plan,as an effective internal incentive method,was put forward by American economist Kelso in the mid-20 th century.It has been gradually accepted by enterprises and improved in the process of wide application.China’s employee stock ownership plan was proposed in the 1980 s,and it was difficult to explore and develop for a long time.It was not until 2014 that China Securities Regulatory Commission officially issued a document to encourage listed companies to implement employee stock ownership plan.The scholars’ literature on the research of employee ownership on innovation performance of enterprises has been paid attention to in recent two years.The existing research is mainly empirical.The specific influence path and effect of ESOP on innovation performance in the form of case study need further research and exploration.This paper takes Kingfa Sci.& Tech.,a leading enterprise in the new chemical industry,as the case study object.Firstly,this paper combs the relevant literature and theoretical basis,and makes a detailed analysis of the theory and influence mechanism of ESOP and enterprise innovation performance.The research finds that ESOP affects enterprise innovation performance by easing enterprise financing constraints,increasing innovation investment,reducing agency costs,improving innovation efficiency,improving risk-taking ability and innovation strategy;Secondly,this paper introduces the relevant cases of Kingfa Sci.& Tech.,and analyzes the implementation scheme and internal and external motivation of its ESOP;thirdly,it expounds the specific impact path of Kingfa Sci.& Tech.ESOP on enterprise innovation investment,innovation efficiency and innovation strategy,and analyzes the effect by horizontal and vertical comparison;finally,based on the above analysis,this paper puts forward some suggestions The study draws relevant conclusions,and puts forward relevant suggestions on how to better implement ESOP and improve enterprise innovation performance.