A Case Study Of Equity Incentive And Firm Growth

The growth of an enterprise is a measure of the ability of an enterprise to develop,It reflects a dynamic process of continuous development and progress of enterprises from the initial stage and It plays an important role in ensuring the sustainable development of enterprises and maintaining economic stability.The development of enterprises in the environment as a whole,because companies often encounter the separation of ownership and management rights caused by inconsistent interests,asymmetric information and principal-agent problems between shareholders and management of.Show that the governance of the growth and development of the enterprise cannot do without the company,so the healthy growth of enterprises can't do without a reasonable and effective corporate governance structure.Most successful companies have a sound corporate governance system,a reasonable and effective incentive mechanism and restraint system is an important part of the enterprise system,the equity incentive as a long-term incentive mechanism is the most effective.Equity incentive mainly through the subjective initiative of the object to play its due role,to grant a certain amount of equity to the operator,so as to enable the operator to participate in the decision-making,take risks and share the profits of the enterprise while enjoying the economic rights and to give them a sense of participation and sense of responsibility,and thus to encourage their due diligence for the company's long-term contribution to the development of strength,is conducive to maximize the mobilization of the enthusiasm of management and shareholders.HUAWEI as a private enterprise of technology industry,has its own development process and experience in the aspect of equity incentive,Private enterprises play an important role in the development of our national economy.On the one hand,is conducive to the promotion of production and business activity of enterprises in our country,on the other hand,is conducive to the development and perfection of the market economic system.In this paper,firstly,through the collection of data,the use of financial analysis,case studies and other methods to study the correlation between the equity incentive and the growth of HUAWEI.Secondly,through the research on the content and background of the equity incentive of HUAWEI in different growth stages.Starting from the research index associated with the growth of the analysis of the HUAWEI company to adopt different modes in different growth phase of the equity incentive incentive effect.Finally,through the case study of HUAWEI group,we can see that there is a positive correlation between equity incentive and corporate growth to a certain extent,This paper studies the successful experience of HUAWEI equity incentive,It provides reference and direction for the implementation of equity incentive for other small and medium-sized private enterprises in China,and contributes to the survival and development of China's private enterprises.at the same time,for the domestic market,although the development of equity incentive in full swing,but there are still many deficiencies in the system,the law,the market needs to be resolved and improved.