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The Case Study On Ren Hui Biological Equity Incentive

Posted on:2020-07-20Degree:MasterType:Thesis
Country:ChinaCandidate:X Y TanFull Text:PDF
GTID:2381330596470007Subject:Accounting
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On August 13,2016,China officially announced the implementation of the Measures for the Administration of Equity Incentives of Listed Companies.According to relevant statistics,in 2005,only seven listed companies in China formulated and implemented the draft equity incentive plan.By the end of 2018,there were more than 1,000 listed companies that announced and implemented the equity incentive plan.It can be seen that in the past ten years,equity incentives have been It has been rapidly promoted and popularized in China’s capital market.Equity incentives can build incentives and enterprises into a community of interests sharing and risk sharing,so that the incentive targets are full of confidence in the future development of the company.In production and management activities,managers can also maximize the protection of shareholders’ rights and avoid short-sighted behavior..In addition,the company’s research and development activities are usually affected by equity incentives.The company’s executives are innovative and creative because of the company’s equity incentives,and are willing to invest more energy in innovation activities.At present,the development of the international economic environment has intensified international competition and put forward higher requirements for the competitiveness of enterprises.In the face of uncertain market environment,systematic analysis of corporate innovation activities is affected by equity incentives,which has strong theoretical and practical value.This paper studies the equity incentive plan of Renhui Bio,a listed company of the New Third Board.On the basis of reviewing and summarizing the domestic and foreign literatures related to equity incentives,this paper briefly introduces the relevant situation of Renhui Biological,and analyzes the motivations of Renhui Biological’s implementation of equity incentive plan,from the incentive mode,incentive targets,and exercise indicators.Systematic analysis of the content and implementation effect of Renhui Biological’s equity incentive plan.Through the research in this paper,it can provide reference for other companies to design and implement equity incentive programs.The research in this paper also proves that a scientific and reasonable equity incentive plan can achieve the role of motivating the company’s senior employees,and the company should also design an equity incentive plan based on its own industry and actual situation to ensure the rationality of the equity incentive plan.Feasibility.Therefore,through a systematic analysis of the case of Renhui Bio-Equity Incentive Program,it can be seen that Renhui Bio has achieved the expected incentive effect after implementing the equity incentive plan.On the one hand,in Renhui Bio’s equity incentive plan,two periods of exercise have met the exercise conditions and entered the exercise phase;on the other hand,Renhui Bio has improved its own development after implementing the equity incentive plan.Capability,solvency,operational capability,profitability,and employee turnover rate have dropped significantly,and the company’s innovation and creativity has been significantly improved.According to the case study of this paper,it can provide reference for other companies to develop scientific and reasonable equity incentive plans.This paper believes that a well-designed equity incentive plan has a great impact on the implementation of equity incentives.Second,improve the corporate governance structure and strengthen internal supervision.The perfect governance structure of the enterprise is the cornerstone for the long-term healthy development of the future.Enterprises must guarantee the implementation of the equity incentive plan,and it must also provide basic guarantees.Finally,the company must choose the appropriate incentive model based on the characteristics of the industry,the characteristics of the incentive object,the characteristics of the incentive tool,and the cost of exercise.
Keywords/Search Tags:equity incentives, research and development enterprises, biotechnology
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