Equity Incentive for Technical Employees and Enterprise Innovation Efficiency: Also on the Provisions of the Limit on the Number of Shares Granted in Incentive Plans
Equity Incentive for Technical Employees and Enterprise Innovation Efficiency: Also on the Provisions of the Limit on the Number of Shares Granted in Incentive Plans
LIU Zhangfa1,2, ZHANG Weidong1
1. School of Accounting, Jiangxi University of Finance and Economics, Nanchang 330013, China; 2. School of Economics and Trade/ Water Economics and Management Research Center, Nanchang Institute of Technology, Nanchang 330099, China
Abstract Using manually collected equity incentive data from equity incentive announcements for technical employees in various enterprises, and after matching the propensity scores year by year, this paper adopts a double difference model to examine the overall and dynamic impact and mechanism of equity incentives for technical employees on innovation efficiency, and analyzes the moderating effect of enterprise and equity incentive plan characteristics on this impact. The conclusions of are as follows: (i) Equity incentive for technology employees can improve innovation efficiency by reducing agency costs of technology employees, improving knowledge sharing and cooperation and supervision of technology employees, and attracting and retaining more technology employees. And its effect on innovation efficiency increases year by year; (ii) When the enterprise is a non-state-owned enterprise, a high-tech enterprise, the chairman of the board of directors does not have R&D career background, and the proportion of directors with R&D career background in the board of directors is lower, the equity incentive for technical employees is more effective in improving innovation efficiency; (iii) The incentive effect of equity incentive on each incentive object has the law of diminishing marginal effect, and there is also a “free rider” phenomenon caused by the excessive number of incentive objects when encouraging technical employees belonging to the same department. This paper further deepens the research on employee equity incentives, providing empirical evidence for improving equity incentive management methods, designing employee equity incentive plans for enterprises, and human resource management.
LIU Zhangfa,ZHANG Weidong. Equity Incentive for Technical Employees and Enterprise Innovation Efficiency: Also on the Provisions of the Limit on the Number of Shares Granted in Incentive Plans. Economic Survey, 2023, 40(6): 072.
2023, Vol. 40 
