Analysis On The Effect Of Equity Incentives In Yuanguang Company

Since the 20 th century,the global economic development has been accelerating,and the scale of the company has gradually expanded.In order to improve the company's management level effectively and carry out various business management activities smoothly,the professional manager system was born.The manager revolution introduces a new contractual relationship into the company,that is,the contractual relationship between the manager and the shareholder.It has been made the management level of enterprises effectively improved,however,the differences between the manager and the owner's goals and the information is asymmetrical,caused a series of principal agent problem.Equity incentive implementation,managers will be able to combine the interests and the interests of shareholders,to resolve inconsistencies goal,therefore,many listed companies have begun to implement equity incentives.Some enterprises have strengthened their management capabilities by implementing equity incentives,avoiding the loss of outstanding talents and promoting long-term development.There are more and more companies implementing equity incentives,but what impact does the implementation of equity incentives have on the company? Is it the original intention of implementing equity incentives? For the study of the effect of equity incentives,scholars at home and abroad mostly conduct research on enterprises that implement equity incentives at a certain stage or enterprises that implement equity incentives in a certain industry through empirical research methods,and research focuses on the market reaction and business performance of equity incentives to enterprises.The impact of the conclusions is also different,mainly due to the differences in the choice of research samples.So what is the incentive effect of implementing equity incentives for a specific enterprise in a high-risk,high-yield,talent-dependent industry in the software industry? As a relatively early implementation of equity incentives in the software industry,Yuanguang Software is relatively mature compared with other companies,and its research is more representative and reference.Therefore,in order to explore the incentive effect of equity incentives on a specific enterprise,this paper takes Yuanguang Software Company as the research object.The effect of the company's implementation of equity incentives will ultimately be reflected in performance.However,for high-risk and talent-dependent software companies such as Yuanguang Software,the purpose of implementing equity incentives includes retaining outstanding talents,enhancing employees' enthusiasm and creativity,and thus enhancing their innovation capabilities.Therefore,the analysis of the effect of equity incentives of Yuanguang Company not only adopts the traditional financial indicators,but also includes the evaluation of the amount of research and development investment,research and development investment growth rate,technology input ratio,number of research and development personnel,number of research and development achievements and evaluation of employee turnover loyalty rate indicators.This paper mainly uses case study method,taking Yuanguang software as the research object,and exploring whether the equity incentives implemented by it can affect the enterprise,and in which aspects will affect the enterprise.The article is divided into six parts.The first part expounds the background and significance of this paper.Then it reviews the related theories of equity incentives at home and abroad,and finally introduces the research contents and methods.The second part of the article is an overview of the relevant theories covered in this article.The third part first introduces the high-light software company,and then analyzes the motivation of its implementation of equity incentive from both external and internal perspectives.The fourth part introduces the plan and implementation of Yuanguang Software's equity incentive.The fifth part is the main part of this paper.Firstly,it analyzes the market reaction before and after the implementation of equity incentives from the market perspective,and then analyzes the changes in profitability,solvency,asset operation ability and growth ability before and after the implementation of equity.In the end,from the non-financial aspect,this paper analyzes the research and innovation ability of the enterprise and the turnover of core personnel,so as to comprehensively evaluate the implementation effect of the equity incentive plan,and then analyze and summarize the shortcomings of the current equity incentive plan.Suggestions for improvement are proposed in a targeted manner,with a view to enlightening the development and implementation of the equity incentive plan for Yuanguang Software and other companies in the software industry in China.Through research,it is found that from the market point of view,the market is not very optimistic to Yuanguang Software in launching the equity incentive plan.From the perspective of financial performance,the Yuanguang Software Incentive Program has a certain positive impact on the company's operating performance.The implementation of equity incentives has improved the profitability and profitability of enterprises,but neglected the common improvement of the company's operational and development capabilities,especially the long-term development of enterprises.The long-term performance of equity incentives is weaker than short-term performance.In addition,the successful implementation of equity incentives has played a certain role in promoting the innovation ability of enterprises and retaining core employees.In general,the equity incentive effect of Yuanguang Software is not very satisfactory.The effect of the equity incentives of Yuanguang Software and the formulation of its schemes are inseparable.The main reason for the insufficient incentive effect is that the performance evaluation indicators and the effective period of equity incentives are not reasonable enough.Therefore,enterprises should fully consider the external environment and formulate an equity incentive plan according to their actual conditions.At the same time,they should pay attention to the diversification of exercise conditions and make timely and appropriate adjustments to unreasonable exercise conditions.