The impact of equity incentive on the innovation ability of Listed Enterprises

Abstract

Equity incentives address the limitation of short-term incentive effects associated with salary incentives and contribute significantly to enhancing the innovation capabilities of key employees. This paper focuses on A-share manufacturing listed companies from 2018 to 2022 to examine the impact of equity incentives on enterprise innovation abilities. The findings demonstrate the positive influence of equity incentives on enterprise innovation capabilities, particularly for core employees. Furthermore, there exists a positive correlation between the level of equity concentration and the innovation abilities of enterprises.