Analysis Of Huayu Software Equity Incentive Case

The emergence of equity incentive provides a long-term incentive mechanism for companies to solve the principal-agent contradiction and retain and attract foreign talents.Equity incentive model has been exploring and developing for many years in foreign countries,which has been more mature and widely used.The first equity incentive plan launched by Vanke began to develop slowly in the 1990 s.With the continuous development of social economy and the increasingly standardized capital market,until the promulgation of the "Management Measures for Equity Incentive of Listed Companies(Trial)",the legal environment of our country is becoming more and more perfect,and our companies began to implement equity incentives on a large scale.As a high-tech industry,software industry is an important foundation of national economic and social informationization.In the current economic environment,it has good development potential and high growth.At the same time,because of the large number of enterprises in the same industry,competition is becoming increasingly incentive.Therefore,the software industry is more and more inclined to implement equity incentives,reduce the cost of principal-agent,attract and retain talents,so as to maintain stable growth of the company.But what is the specific effect of equity incentive? Has it achieved the goal of mobilizing enthusiasm,retaining talents and increasing the value of enterprises? Further research is needed.At present,most of the domestic research on equity incentive is based on the large data of a certain period of time and a certain market.These studies provide a common reference for the application of equity incentive in every industry and every stage in China.Based on the previous empirical research results of scholars,this paper chooses the case study method to study Huayu Software,a software industry company.Combining the relevant theoretical basis of equity incentive.Firstly,several representative financial indicators are selected to compare the profitability,business ability and long-term development Ability profitability,of the company from 2012 to 2017.In addition,the horizontal comparative analysis of relevant financial data is carried out by companies with similar total assets in the software industry.To make a comprehensive analysis and evaluation of its financial effect.The non-financial effects of equity incentive are analyzed in terms of innovation ability and employee stability.,Event analysis method is used to analyze the changes of stock price before and after the announcement date.It is found that the stock option incentive has promoted the long-term stable development of Huayu Software.However,there are still some problems in this incentive scheme,such as fixed incentive object,single evaluation index,short incentive time limit and so on.Finally,according to the development trend of the software industry and its own characteristics,the corresponding improvement suggestions are put forward.