Abstract
High quality is the direction of development, innovation drives high-quality development, and interest incentives drive innovation. Existing studies have shown that executive equity incentives can increase the financial performance of enterprises. Therefore, can executive equity incentives promote the high-quality development of enterprises, thereby improving the quality of industrial development? This paper takes China’s knowledge-intensive enterprises as a sample from 2015 to 2019. On the basis of using the LP semiparametric estimation method to measure the total factor productivity of the enterprise, in accordance with the intermediary effect test procedure, the stepwise regression method is used to study the innovation-driven effect of the executive equity incentives on the quality of enterprise development. The study found that executive equity incentives have an inverted U-shaped impact on the high-quality development of companies, with 20% being the optimal ratio. There is a partial mediating effect in corporate innovation activities on this transmission path. Based on this, suggestions are made to share residual income with senior management and build a high-quality innovative production chain.
Highlights
"High-quality development" is the first statement put forward by the 19th National Congress of the Communist Party of China in 2017, indicating that China's economy has begun to shift from a stage of rapid growth to a stage of high-quality development
As the main force that promotes the development of the capital market and the improvement of economic quality, the importance of improve the quality of enterprise development is selfevident
As early as the report of the 18th National Congress of the Communist Party of China, the goal of "my country enters the ranks of innovative countries by 2020" was clearly stated
Summary
"High-quality development" is the first statement put forward by the 19th National Congress of the Communist Party of China in 2017, indicating that China's economy has begun to shift from a stage of rapid growth to a stage of high-quality development. As the main force that promotes the development of the capital market and the improvement of economic quality, the importance of improve the quality of enterprise development is selfevident. People are the core element of innovation, and knowledge-intensive enterprises with "people" as their important assets are the main force and leader of innovation. Taking knowledge-intensive enterprises as an observation point can better explore the role of people in innovation and innovation in highquality development. The knowledge-intensive enterprise Huawei has implemented six large-scale equity incentive plans, and 99% of the existing shares are held by the labor union committee of Huawei, which mobilizes people's enthusiasm to the maximum. Can the implementation of equity incentives for the executives and sharing of residual income with them promote the high-quality development of the company? Can the implementation of equity incentives for the executives and sharing of residual income with them promote the high-quality development of the company? Does innovation play a role in this?
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