Research On The Relationship Between Equity Incentive,salary Gap And Enterprise Innovation Performance

GEM enterprises occupy a pivotal position in China’s market economy,and the innovation ability of GEM enterprises is an important aspect of China’s economic development,which reflects the overall strength and international competitiveness of China.Therefore,how to promote the innovation of enterprises has gradually become the focus of society,enterprises and scholars However,since the innovation activities of enterprises have huge risks and unpredictable benefits,managers shift more attention to short-term profits,which in turn indirectly affects the innovation performance of enterprises.Under such circumstances,it is important to design an effective incentive mechanism to motivate company executives and employees.In China’s GEM listed companies,equity incentive is a more common long-term incentive method.By analyzing and comparing the innovative effects of different equity incentive methods on the company,it can provide some theoretical basis and practical guidance for the company’s internal governance and the improvement of innovation ability.The current research on equity incentive is mainly focused on manufacturing companies,main board listed companies and technology-based companies,while there are few studies on domestic GEM listed companies.Then,what kind of effect will be produced by different equity incentive methods in GEM-listed high-tech enterprises? How to conduct equity incentive to maximize innovation performance? What role does the pay gap play in this? This is still a question worth exploring in depth.This paper applies theories of principal-agent theory,tournament theory,behavioral theory,incentive theory,and empirical analysis to investigate the effects of executive equity incentives and employee stock ownership plans on corporate innovation,and this paper also investigates the moderating role of the pay gap inside and outside the company.Firstly,the domestic and foreign studies on equity incentives,pay gap and corporate innovation are compiled with a view to further exploring this paper on this basis;secondly,the theoretical basis is elaborated and analyzed,followed by the hypothesis on this basis;then the high-tech enterprises listed on China’s GEM from 2011-2019 are selected as the research sample,and the different equity incentive model and fixed model under different equity incentive models,and the moderating effect model under internal and external pay gap,the research results show that(1)equity incentive positively promotes the innovation performance of enterprises;(2)the internal and external pay gap has an enhanced moderating effect on equity incentive and enterprise innovation,that is,the moderate expansion of internal and external pay gap will In other words,a moderate increase in the internal and external pay gap will positively promote corporate innovation.