A Study On The Relationship Between Equity Incentive And Firm Growth

The problem of enterprise growth has become a hot issue for scholars,but there is not a unified conclusion about the key factors of growth.There are few literatures about the relationship between the design of equity incentive plan and the growth of enterprises.The steady development of securities market in China today,more and more listed companies choose equity incentive to motivate employees in key positions,so that the interests of management and shareholders tend to be consistent and the development of enterprises to continue.Although there are so many listed companies in the equity incentive,in general,because of China's capital market is still too young,environmental governance of listed companies are generally poor,so the equity incentive plan implementation effect is not very ideal.At present,the communication industry has slowly infiltrated our lives,which is a large investment in R&D,while the implementation of equity incentive more industries.Therefore,this paper chooses the communication manufacturing industry as the sample of this study.On the basis of literature review,this paper draws on the existing research results at home and abroad.Construct the enterprise growth evaluation system from seven aspects of profitability,operating capacity,solvency,development ability,cash ability,innovation ability and the ability of human resources.And by using the entropy method of enterprise growth of communication manufacturing industry to measure and rank.It is concluded that the growth of listed companies with equity incentive is better than that of listed companies without equity incentive,but the gap is not very big.In order to find a deeper relationship between equity incentive and enterprise growth,this paper selects the financial data of ZTE 2005-2015 as samples,and analyze the relationship between equity incentive and corporate growth.The conclusion is that there are some problems in the two equity incentive scheme of ZTE,although it can have a great effect on the growth of enterprises in the short term,but in the long run,the effect is not good.Finally,in order to find the specific problems of ZTE equity incentive scheme,this paper chooses Fiberhome to compare with ZTE's vesting conditions,incentive object,effect comparison,to draw the conclusion:the equity incentive plan can improve is a good way to promote the growth of enterprises.From the perspective of research on the relationship between equity incentive and enterprise growth,this created by the index setting,the entropy of the evaluation system opens up new directions and methods for enterprise growth.It also provides theoretical reference and data support for the design of the future equity incentive plan of the listed manufacturing companies.At the same time,it is argued that the adoption of a reasonable equity incentive scheme can promote the growth of listed companies.