Equity Incentive And Labor Income Share Of Enterprises

In 2022,the General Secretary Xi Jinping once again proposed in his 20 th report that we should continue to steadily promote common prosperity for all people,promote all-round social progress,and enhance people’s well-being.Common prosperity is the essential requirement of China’s socialist modernization.To achieve common prosperity for all the people and to prevent polarization,we must ensure that personal income increases in parallel with economic growth and the remuneration for labor increases in parallel with labor productivity.As an important index to measure a country’s income distribution pattern,labor income share has been widely concerned by scholars from all walks of life.However,according to the existing literature,our labor income share presents a declining trend,which seriously affects the realization of the goal of common prosperity.And equity incentive system is a medium and long-term incentive mechanism widely used by Chinese enterprises,which will have an impact on the labor income share of enterprises?Based on this,this paper selects the relevant data of A-share listed enterprises in Shanghai and Shenzhen from 2010 to 2020 as research samples,adopts multiple linear regression method,propensity matching score-difference method and instrumental variable method to empirically test the mechanism between equity incentive system and enterprise labor income share.And further examine the property right nature and profit status of enterprises in which the adjustment effect.Finally,starting from the main characteristics of equity incentive system,this paper explores the effect path of equity incentive intensity,scope,duration and performance assessment pressure on enterprise labor income share.The results show that the implementation of equity incentive plan can help increase the share of labor income of enterprises,which is more significant in non-state-owned enterprises and profitable enterprises.The main characteristics of equity incentive,that is,equity incentive intensity,scope,duration,and exercise performance assessment pressure,can positively increase the labor income share of enterprises.With the enhancement of equity incentive intensity,the labor income share of enterprises will also increase.The larger the scope of equity incentive,the more beneficial to increase the labor income share of enterprises;The longer the period of equity incentive,the more significant the promotion effect on the labor income share of enterprises;Finally,the greater the pressure of performance assessment,the higher the share of labor income.The conclusion of this paper provides a new practical idea for further improving the labor income share of enterprises,and opens up a new perspective for protecting the rights and interests of both labor and capital,mobilizing the enthusiasm of workers,and promoting the realization of common prosperity.It also provides empirical evidence for enterprises to design equity incentive system scientifically,give full play to its incentive role,retain outstanding talents,and promote the long-term development of enterprises.In addition,the conclusion of the research is also useful for relevant government departments to strengthen the supervision of equity incentive plans of state-owned enterprises to prevent equity incentive plans from becoming the medium of conveying benefits to senior executives.