Research On The Impact Of Equity Incentives On Corporate Innovation Performanc

Share Incentive Plan(SIP),a type of employee ownership that allows companies to offer free or discounted shares in the company to their senior executives and core employees,is an important incentive method for modern enterprises to engage in medium to long-term incentives.As a long-term and effective measure,SIP plays a significant role in stimulating the enthusiasm of employees in the enterprises.The employees who meet the standards formulated by the enterprise can be granted incentives,thus to obtain a certain proportion of shares and become the shareholders,participating in the management decision-making,and binding themselves together with the long-term development of the enterprise.The development of an enterprise relies on the contribution of talents.SIP,as an efficient and long-term incentive measure,is a reward that affirms the great contribution of core employees to the promotion of enterprise value.It encourages core employees to give full play to their own skills,provide advice and suggestions for the development of the enterprise.They may enjoy multiple rights such as voting rights,dividend distribution,personnel appointment and dismissal,while also assuming more responsibilities,sharing risks and benefits with the enterprise.Innovation is the basis for the sustainable development of enterprises.To maintain high-quality and long-term development,enterprises must rely on innovation,the driving force for development.Nowadays,products all over the world are available to the customers.But only the goods that keeping pace with the times and constantly innovating can stand out and win the favor of consumers on a global scale.Faced with increasingly severe international and domestic market environment,enterprises must attach importance to innovation to cope with market changes.In recent years,China’s large and medium-sized enterprises have attached increasing importance to technological innovation,and their investment in scientific and technological innovation continues to increase.The implementation of SIP has a direct impact on the innovation ability of core employees and the improvement of enterprise innovation performance.Taking listed companies in China as an example,111 listed companies announced the implementation of SIPs in 2011,and the number rose to 818 in 2021,indicating that the implementation of modern share incentive system is effective and favored by various enterprises.Therefore,a case study on the impact of share incentives on innovation performance indicate that the implementation of SIPs by enterprises can effectively promote innovation investment,thereby improving innovation performance of enterprises.Taking HW Corporation as the research object,this thesis analyzed the relevant data from 2012 to 2021.After a detailed case study,the conclusions are as follow: there is a significant positive correlation between the intensity of share incentives implemented by the company and the performance of the company’s innovation investment.This thesis aims to enhance the effect of share incentive and improve the company’s innovation performance according to the conclusion of the case analysis and the operating system and actual situation of HW Corporation.On the basis of the characteristics of HW Corporation,differentiated share incentive plans are formulated to improve the company’s operating environment and enhance the company’s innovation performance.And at the same time,SIP improve the knowledge and skills of management personnel,thereby promoting the innovative development of the company.