Research On The Impact Of Originwater’s Core Employee Equity Incentive On Innovation Capability

Innovation is the primary driving force for development,having important significance for promoting the development from social economy to enterprises.The way for enterprises to improve core competence is to pay more attention to innovation.The reserve of talents is the precondition of innovation,and the main way for enterprises to promote their innovation capability is attracting and retaining talents,stimulating them to work hard and innovate.Equity incentive as a long term incentive mechanism,has been implemented formally more than 10 years in China,but it’s still a open question whether equity incentive can play incentive effect or not.The core employee as the body of innovation,is also the core elements in innovation activities.In theory,implementing equity incentive to core employee can prompt them to work hard for prospective earnings,elevate their innovation positivity and promote enterprises’ innovation capability ultimately.Origin Water is an eco-friendly high-tech enterprise which specializes in water treatment.With the larger scale and more important of human capital,Origin Water consecutively implemented four periods core employee equity incentive after going public to retain high quality personnel.And this paper choose the first three periods of completed equity incentive as the research object to study the impact of Origin Water’s core employee equity incentive on innovation capability.This paper first study incentive effects of the first three periods equity incentive by analysing the rationality of equity incentive’s essential factors and the short term market reaction;Then evaluate the impact of Origin Water’s core employee equity incentive on innovation capability by analysing the changes of related indexes at the innovation inputs stage,outputs stage and create income stage;Finally,using regression analysis to study the impact of Origin Water’s core employee equity incentive on innovation capability.The results show that Origin Water’s core employee equity incentive can promote its innovation capability.And the third period stock option and restricted stock incentive has the best implementation effect,which shows that incentive pattern can also make a difference to innovation capability.The conclusions of this paper will be helpful to perfect Origin Water’s equity incentive,at the same time,it hopes to have the reference value for other enterprises in the same field and high-tech enterprises to promote innovation capability by equity incentive.