Executive Equity Incentive,Environmental Uncertainty And Ambidextrous Innovation

Entering the "14th Five-year Plan" period,the CPC Central Committee and the government emphasize the promotion of high-quality development of all aspects of China’s work.President Xi Jinping also stressed in several meetings that China’s enterprises should take on important responsibilities and be brave in innovation to boost China’s economic development.Innovation has become the necessary way for a country and enterprise to improve their competitiveness.This also means that high-tech enterprises,which are important to be responsible for innovation,should continue to improve their innovation level and innovation capacity to meet new challenges in the complex economic situation.This paper makes a more detailed division of innovation,namely exploratory innovation and exploitative innovation,which can more effectively according to the characteristics of different types of innovation targeted research,and also can reflect the effect of executive equity incentive.Executive equity incentive is an important way to alleviate interest bias between executives and shareholders,which can effectively improve executives’ loyalty to enterprises and encourage them to consider more about the long-term development of the company,so they are more motivated to carry out innovation activities.Similarly,the development of enterprises and the decisions made by executives are both affected by the environment,because the environmental uncertainty will directly affect executives’ estimation of enterprise innovation returns and cause stock price fluctuations.It is not objective to study the development of enterprises without the environmental background,even will produce opposite results.Therefore,it is necessary to study the relationship between environmental uncertainty,executive equity incentive and ambidextrous innovation in high-tech enterprises.By summarizing and sorting out relevant literature at home and abroad,this paper conducts empirical tests on the basis of theoretical analysis,puts forward research hypotheses and establishes regression models based on ambidextrous innovation theory,principal-agent theory,encouragement theory and equity option theory,etc.A total of 1667 samples from Shanghai and Shenzhen A-share high-tech enterprises from 2017 to 2019 were used to analyze the impact of executive equity incentive on ambidextrous innovation,and to explore the moderating effect of environmental uncertainty on the relationship between the two.At the same time,in order to further analyze whether the above results will be different between state-owned and non-state-owned enterprises,this paper carries out grouping regression according to property rights.The results show that: First,executive equity incentive can improve the input of ambidextrous innovation,and compared with exploitative innovation,it has a stronger positive effect on exploratory innovation.Second,environmental uncertainty will reduce the investment level of ambidextrous innovation,and the impact of exploratory innovation is greater than that of exploitative innovation.Third,environmental uncertainty negatively moderates the relationship between executive equity incentive and exploratory innovation,but it has no significant moderating effect on the relationship between executive equity incentive and exploitative innovation.This paper further analyzes the different nature of equity differences will lead to the results of the study,the results show that state-owned enterprises because of limiting conditions、government support and the responsibility of the executive,equity incentive doesn’t have a significant impact on exploratory innovation investment,also the environment uncertainty won’t affect the level of ambidextrous innovation,but the impact of non-state-owned enterprises is more pronounced.