Life Cycle, Equity Incentives and Innovation

Abstract

Drawing on and combining with relevant theories such as contingency thinking, life cycle and principal-agent, this paper puts forward the assumption that the impact of equity incentive on innovation performance will fluctuate due to the heterogeneity of life cycle. Moreover, a large number of practice results also show that at different stages of development, companies will have different heterogeneous equity incentive methods. This paper takes A-share listed companies from 2007 to 2019 as the research object, analyzes and discusses the following contents by using the empirical research method and Stata17.0 software, and sets the dependent variable and independent variable as innovation performance, and the intensity and mode of equity incentive respectively: (1) The innovation performance of A-share listed enterprises is affected by the equity incentive model; (2) What kind of impact will different life cycle stages have on the relationship between innovation performance and equity incentive of A-share listed companies; (3) What kind of impact will different life cycle stages have on the relationship between equity incentive models and innovation performance of A-share listed enterprises.