Research On The Influence Of Equity Incentive Model On Corporate Performance

With the rapid development of economy in today’s era,the talents who master the innovative technology and senior management ability play an important role in the enterprise.Nowadays,with the separation of management right and management right,the principal-agent problem also comes.Therefore,it is urgent to establish a scientific and effective equity incentive mechanism in the contemporary context.By giving the corresponding stock incentive to the management,the enterprise can make them have the sense of ownership and form the unity of interests of both sides.At the same time,it can also help the enterprise attract senior talents in the fierce talent competition market and stabilize the existing personnel.This paper uses case analysis to discuss the role of incentive mode on corporate value,hoping to provide some suggestions for enterprises in selecting incentive mode and designing incentive scheme.In this paper,the first listed eye medical institution,Aier Ophthalmology,was chosen as the research object.Four equity incentive plans were implemented and three different models were adopted before and after it,and each incentive design was significantly different.The purpose of this paper is to study the impact of different modes of equity incentive on the value of the company,and to summarize and make suggestions on the design of the scheme,so as to provide some suggestions for the future practice of similar enterprises.This paper is divided into six parts.The first part briefly describes the enterprise and policy environment,the classification and summary of the important ideas of equity incentive,and introduces the main content structure and research methods of this paper.The second part starts from the basic concept of equity incentive,sorts out the relevant theories,compares the advantages and disadvantages of several typical incentive modes,and sorts out the relevantsystems of equity incentive in China.The third part introduces the basic situation of Aier ophthalmology and introduces the basic content of four times equity incentive of Aier ophthalmology based on SWOT analysis,and makes a horizontal comparison from the object of exercise,the conditions of exercise and the granting mode.The fourth part analyzes the effect of equity incentive from three aspects: financial performance,non-financial performance and stock price.The fifth part summarizes the success and deficiency of the equity incentive scheme according to the analysis of the four equity incentive schemes.Finally,some suggestions are put forward for the restrictive factors of aer ophthalmology.Through the horizontal and vertical analysis of four incentive schemes of Aier Ophthalmology,it is concluded that equity incentive has a positive impact on enterprise value,talent competition,strategic development,etc.However,the choice of incentive mode should be diversified,and the conditions of exercise and performance indicators should be improved.