Research on the Impact of Stock Incentives on Firm Innovation Performance

Abstract

Innovation is the driving force of economic development. How to take effective incentives to promote innovation is an important issue in theoretical research. Based on the data of China's A-share listed companies from 2008 to 2018 as a sample, this paper analyzes the relationship between equity incentives and corporate innovation performance based on the perspective of R&D incentives. The study found that: equity incentives have a significant positive effect on improving the innovation capabilities of Firms; the positive effects of equity incentives in state-owned enterprises on innovation are more significant than non-state-owned firms; the impact of equity incentives on firm innovation is affected by the organization’s internal risk-taking ability , The stronger the corporate risk-bearing ability, the more significant the role of equity incentives in promoting innovation; the intensity of market competition outside the organization also has a significant positive impact on the relationship between equity incentives and corporate innovation; at the same time, the relationship between equity incentives and compensation incentives There is a complementary relationship, and salary incentives will strengthen the positive impact of equity incentives on corporate innovation. The research in this paper enriches the research content of equity incentives, provides theoretical guidance for firms to adopt effective incentives, and improves innovation capabilities and innovation performance. It has important enlightenment significance for promoting the high-quality development of Chinese firms.