Research Article
How do New Ventures get out of the Governance Dilemmas through Equity Incentives? —— Based on Experimental and Mathematical Statistics Analysis
@INPROCEEDINGS{10.4108/eai.9-12-2022.2327717, author={Pengfei Zhang and Yibing Tang and Zengyuan Wu}, title={How do New Ventures get out of the Governance Dilemmas through Equity Incentives? ------ Based on Experimental and Mathematical Statistics Analysis}, proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China}, publisher={EAI}, proceedings_a={MSIEID}, year={2023}, month={3}, keywords={equity incentives; governance dilemmas; new ventures; moderated mediation model; multiple regression analysis}, doi={10.4108/eai.9-12-2022.2327717} }- Pengfei Zhang
Yibing Tang
Zengyuan Wu
Year: 2023
How do New Ventures get out of the Governance Dilemmas through Equity Incentives? —— Based on Experimental and Mathematical Statistics Analysis
MSIEID
EAI
DOI: 10.4108/eai.9-12-2022.2327717
Abstract
It is necessary for new ventures that want to expand production scale to adopt the governance model of separation of ownership and management rights, but this model has brought many governance dilemmas while improving governance efficiency. Incentive theory believes that the implementation of equity incentives for operators can help new ventures out of the governance dilemmas, but the applicability of this method needs to be further explored. Therefore, in order to study the internal mechanism and applicability of this method, this paper takes 202 GEM listed companies as samples, constructs a mediation model, and designs experiments for multiple regression analysis. On the basis of the main effect regression, the mediating effect of R & D investment intensity and the moderating effect of ownership concentration and ownership are also discussed. It is found that for new ventures: (1) Equity incentives are helpful to help enterprises out of the governance dilemmas, but the effect is different due to different enterprises. (2) Equity incentives can help enterprises out of the governance dilemmas by increasing the willingness of operators to invest in innovative research and development. (3) Low ownership concentration and non-state-owned enterprises to implement equity incentives effect are significant, while state-owned enterprises have little effect. The research conclusions help to provide reasonable ideas for the long-term development of new ventures.