Research On The Influence Of Equity Incentives On Corporate Performance Based On Projection Pursuit Method

Equity incentives have the advantages of high operation and high efficiency in modern company system,and have been recognized by many companies,especially in high-tech enterprises.As long-term effective incentives,equity incentives will have a profound impact on corporate performance.In this context,this paper firstly reviews the motives,influencing factors and related literatures of the impact of equity incentives through literature research,and introduces the basic principles and implementation process of the projection pursuit method used in performance evaluation.This paper then introduces the R&D innovation and equity incentives implementation process of HW company,and analyzes the current equity incentives plan and its characteristics of HW company.Then,this paper analyzes the impact of HW company's implementation of equity incentives on corporate performance and compares the performance of HW company and companies in the same industry based on the traditional financial indicator method.In view of the shortcomings of the financial indicator method,this paper innovatively introduces the projection pursuit method,and builds the enterprise comprehensive performance evaluation index system based on the projection pursuit method.The evaluation system is applied to the evaluation of the comprehensive performance of HW company and companies in the same industry,and explores the impact of equity incentives on company performance.Finally,this paper summarizes HW company's experience in implementing equity incentives and puts forward reasonable suggestions to companies implementing equity incentives plans.Through analyzing the influence of HW company's equity incentives on corporate performance,this paper finds that: Financial index method cannot reach a consistent conclusion when measuring the influence of equity incentives on company performance.Therefore,compared with the financial index method,the projection pursuit method is more effective to study the impact of equity incentives on corporate performance.Equity incentives can effectively improve comprehensive performance of HW company by giving employees periodic dividend rights.This paper introduces innovation ability into the scope of comprehensive performance evaluation,clarifies the influence of equity incentives on the company's comprehensive performance based on projection pursuit method,and provides reference for high-tech enterprises to formulate and implement equity incentives plans.