Research On The Influence Of Executive Equity Incentive On Enterprise Value

In the context of economic globalization,the competition among enterprises is becoming more and more fierce.As a key factor of economic development,innovation can effectively enhance the long-term competitiveness of enterprises.As a decision-maker,executives play a key role in the development and operation of enterprises.In modern enterprise governance,the agency problem caused by the separation of enterprise ownership and management is particularly prominent.As a product of institutional innovation,executive equity incentive is an important part of the company’s internal governance system,which can effectively alleviate the contradiction between shareholders and executives.Through the equity incentive of senior executives,senior executives are encouraged to increase the investment in enterprise innovation and improve the value of the enterprise from the long-term perspective of the enterprise.Therefore,this paper takes innovation investment as the starting point to study the impact of executive equity incentive on enterprise value.This paper first defines the main concepts of executives,executive equity incentives and corporate value,and analyzes the impact and path of executive equity incentives on corporate value based on innovation theory,principal-agent theory,incentive theory and advanced theory,and finds that Executive equity incentives can affect corporate value through corporate innovation investment,so the mediating variable of innovation investment is introduced.The innovation investment decision of an enterprise requires senior executives to make strategic choices based on various factors.The characteristics of the senior management team are different,and the judgments and choices made are also different.Therefore,the characteristics of the senior management team are selected as moderator variables.Different properties of enterprise property rights have different effects of implementing executive equity incentives.Therefore,enterprises are divided into state-owned enterprises and non-state-owned enterprises according to the nature of property rights as a moderating variable.The relationship models among executive equity incentives,innovation investment,enterprise value and moderator variables are respectively constructed.According to the data of my country’s A-share listed companies from 2017 to 2020,further empirical tests show that there is a significant positive correlation between executive equity incentives and corporate value,and innovation investment has an intermediary role.The age and gender characteristics of the executive team and the nature of corporate property rights have moderate effects on executive equity incentives,innovation investment and corporate value.Finally,according to the research results,some suggestions are put forward to reasonably formulate executive equity incentive policies,improve corporate value and enhance corporate innovation..