Case Study On The Performance Impact Of Xingyu Stock's Implementing Of Equity Incentive

The automobile manufacturing industry has played an indelible role in China's economic development.However,due to insufficient scientific and technological capabilities,platform construction and backward technological level,China's automobile manufacturing industry still has a large gap compared with developed countries,which has led to a high level.The outflow of technical talents is insufficient,and the absorption of their own scientific research and innovation is insufficient.Therefore,some automobile manufacturing enterprises in China have begun to use the equity incentive mechanism in order to retain talents,improve their own independent innovation capabilities,solve the problem of principal-agent.But the impact of the implementation of equity incentives on the performance of auto manufacturing companies has yet to be explored.Therefore,this paper uses the case analysis method to study the specific impact of the implementation of equity incentives on the company's performance in the first implementation of equity incentives and successful unlocking in China's automobile manufacturing industry,and proposes relevant suggestions based on the research conclusions and existing problems.Firstly,it introduces the reasons and implementation of the equity incentives implemented by Xingyu.Secondly,it analyzes the design of the equity incentive plan and the operation status of the company during the equity incentive period.Then,it uses the event research method,the financial index method and the economic value added method to quantify separately.Analyze the impact of equity incentives on the company's short-term and long-term performance;finally draw conclusions based on the above analysis and propose improvements.In the end,the following conclusions were drawn: due to the instability of the short-term capital market,the small number of incentives,the low operating conditions,and the low-speed growth period of the auto industry,the competition in the car lamp industry is fierce.There is no positive attitude towards the effect of equity incentives,which makes the equity incentives of Xingyu shares have little effect on company performance in the short term.However,in the long run,the implementation of equity incentives has played a very positive and positive role,effectively stimulating the enthusiasm of the motivated participants.After four years of joint operation and research and development,managers and technicians have greatly improved the company's management system.The R&D level,market share and production capacity have been improved,the customer structure and product structure have been optimized and upgraded,customer resources have been enriched,and high-end professionals have been introduced,which has improved the company's profitability,operational capability,solvency and development.Capabilities and other abilities have also created wealth for shareholders and improved company performance.Therefore,the implementation of equity incentives of Xingyu has no impact on company performance in the short term and has a positive impact in the long run.