Financial Performance Analysis Of Haier's Equity Incentive Program

With the progress of society and the development of the times,the application of equity incentives in enterprises has become more and more extensive,and it has been recognized by more and more enterprises.The effect of the equity incentive system is also obvious when solving the problems arising from the principal-agent theory.Due to the late introduction of equity incentives in China,the relevant experience and conclusions are not rich,and the Western countries have been practicing for many years,and the relevant theories have been relatively mature.Equity incentives have their own unique advantages,which can effectively solve the shortcomings of the principal-agent model.On the one hand,they can stimulate the potential and enthusiasm of employees.On the other hand,it is also possible to better realize the unity of the interests of business managers and owners,and reduce the differences of interests between the two.This paper mainly uses case analysis to analyze the impact of equity incentives and corporate financial performance from multiple perspectives.From 2009 to 2017,Haier Company implemented a total of four equity incentive plans.Although the whole process has some small fluctuations and twists and turns,the overall effect is still very obvious.This is a clear response to the relevant financial indicators of the company.The value of the enterprise also has a clear upper body trend,and the related financial performance indicators have also seen significant growth.There are two important reasons for choosing Haier as the research object.First of all,Haier is a well-known enterprise both in China and abroad,and it plays an important role in the home appliance industry.Its products are also exported overseas.Secondly,Haier Company is an enterprise that implements the equity incentive plan earlier in China.Its application of equity incentive plan has a long time and rich experience,so the research value is relatively large,which has a good reference for other enterprises in China to implement the equity incentive plan in the future.This paper is divided into five parts.The first part is the introduction,which introduces the research background and significance of equity incentive,and divides it into theoretical and practical significance.Then it summarizes the research status at home and abroad,including the theoretical research of equity incentive and the relationship between equity incentive and corporate performance.At the same time,a literature review was made.Thispart finally introduces the research content,research methods and innovation points of this article,clarifies the main line of this article and clarifies the research ideas;the second part mainly introduces the related concepts and theories of equity incentive,enriches the content of the article and consolidates the theoretical basis;the third part introduces in detail the four stages of equity incentive plan implemented by Haier Company.At the same time,it also includes a brief introduction of Haier Company and the motivation of implementing equity incentive plan;the fourth part is the core content of this paper,through focusing on the analysis of relevant financial indicators,to judge the impact of equity incentive on corporate performance.This paper makes an analysis from five aspects: operating performance,profitability,solvency,operating capacity and development capacity.At the same time,it also points out some shortcomings of the scheme,and puts forward corresponding suggestions.The fifth part draws the conclusion of this paper,as well as some enlightenment for the future.