The Influence Of Equity Incentive Of Core Employees On Innovation Performance Of Enterprises

Innovation is the first driving force to lead economic development.How to continuously and steadily improve the innovation level of Chinese enterprises has been a hot topic in the academic circles.In recent years,China has increased the support for domestic enterprises and scientific research institutions through the formulation of innovation development strategy and the introduction of preferential policies for innovation,and the innovation level of Chinese enterprises has been continuously improved.According to the Global Innovation Index(GII)report 2020 issued by the world intellectual property organization,China’s innovation capability in 2020 ranks 14 th,which is equal to that in2019,and is the only middle-income country in the top 20.But at the same time,we should also see that there is still a big gap between the innovation strength of Chinese enterprises and that of developed countries,and the overall innovation level of China does not match the status of the world’s second largest economy.Therefore,it is urgent to strengthen the research on innovation performance.With the characteristics of technology intensive and knowledge intensive,high-tech enterprises continue to carry out technological innovation and achievement transformation,and are becoming the vanguard of China’s competition on the world economic stage.As an effective management means and incentive system,equity incentive provides ideas for improving the innovation performance of China’s high-tech enterprises.In the enterprise,the core employees master the key knowledge and core technology,which is essential for the successful implementation of the innovation plan,so this group has become an important incentive object of the equity incentive plan;at the same time,the market competition environment will also affect the choice of the core employees in the innovation activities,thus affecting the innovation performance of the enterprise.Taking high-tech enterprises as the research object,this paper discusses the relationship between equity incentive of core employees and enterprise innovation performance,and analyzes the possible impact of market competition on the relationship between them.Based on the principal-agent theory,incentive theory and technological innovation theory,this paper reviews the relevant literature at home and abroad in recent years,and puts forward the research direction of this paper.In the empirical analysis part,this paper selects the panel data of China’s A-share high-tech enterprises from 2010 to 2018,uses the mixed regression model to analyze the relationship between the equity incentive of core employees and enterprise innovation performance,and tests the relationship between the equity incentive of core employees and enterprise innovation performance through the follow-up descriptive statistics,correlation analysis and regression analysis This paper analyzes and verifies whether there are differences in the relationship between core employees’ equity incentive and enterprise innovation performance under different degrees of market competition,and the difference of incentive effect under different equity incentive methods.Finally,it improves the credibility of this paper through robustness test.The empirical results show that: as far as China’s A-share high-tech enterprises are concerned,there is a significant positive correlation between the equity incentive intensity of core employees and the innovation performance of enterprises,which indicates that when designing the equity incentive plan,appropriately increasing the incentive proportion of core employees is more conducive to the realization of the enterprise’s innovation goals;and when the market competition in the industry is more fierce,the core employees’ equity incentive intensity is higher,the effect of employee equity incentive on enterprise innovation performance is stronger.In addition,compared with stock options,the use of restricted stock to motivate core employees can play a better incentive effect,which is also in line with the actual situation of China’s equity incentive market in recent years.Finally,based on the above analysis,this paper puts forward countermeasures and suggestions from the perspective of improving the equity incentive scheme and optimizing the market environment,in order to provide reference for high-tech enterprises to attract and retain high-quality core employees,stimulate their sense of ownership to a greater extent,enhance their work enthusiasm and creativity,and then promote the innovation performance and enhance enterprise value.