Research On The Influence Of Equity Incentive On Enterprise Innovation Performance Of STAR Market

Equity incentive is an incentive measure widely adopted by foreign enterprises,and Chinese listed companies are also actively learning from it,introducing equity incentive plans in order to promote innovation and development of enterprises.However,whether equity incentive really promotes innovation and improves innovation performance at home or abroad,the research conclusions are inconsistent.In recent years,China has vigorously implemented an innovation-driven strategy.In order to serve scientific and technological innovation capabilities and support highlevel and sustained innovation,the STAR Market was formally established.STAR Market is an important position to promote high-level innovation.Since the opening of the board,more and more listed companies have practiced equity incentives.It is very necessary to study the impact of equity incentives on enterprise innovation performance.Therefore,based on the data of listed companies on the STAR Market,this paper explores the relationship between equity incentive and innovation performance.On the basis of combing past literature and relevant theories,this paper adopts the method of combining empirical analysis with case analysis.In this paper,all the listed companies on STAR Market from 2019 to 2021 are involved.From the dimension of innovation output,innovation performance is measured by the number of new patents,and equity incentive is measured by the proportion of management shareholding.The regression analysis and robustness test of the data show that there is a nonlinear inverted U-shaped relationship between equity incentive and innovation performance,and when the proportion of executive shareholding is low,the two are negatively correlated.When the executive shareholding ratio is at the medium level,the equity incentive can play an incentive role.When the shareholding ratio of senior executives is high,the two are negatively correlated,and there is a moat defense effect.As for the negative correlation between low level of equity incentive and innovation performance shown by the empirical results,this paper selects Jptoe which is listed on STAR Market with low equity incentive for specific case analysis.Firstly,this paper makes a detailed analysis of the equity incentive plan implemented by Jptoe Company,and then analyzes and compares the innovation performance of the company before and after the implementation of the equity incentive plan.It is found that the low level of equity incentive is negatively correlated with the innovation performance,which may be due to the insufficient equity incentive,unreasonable performance assessment indicators and other reasons.Finally,based on the conclusion of the empirical analysis and case analysis above,this paper puts forward relevant suggestions on the implementation of equity incentive from the aspects of performance indicator selection,incentive strength,incentive object,etc.,in order to provide reference for the future implementation of equity incentive for listed companies on STAR Market.