Research On The Impact Of Equity Incentive On Business Performance Of HUAWEI

With the rapid development of China's economy and society,technological innovation has become the main trend of all walks of life.Under this circumstance,more and more enterprises and scholars begin to pay attention to how to keep employees' work enthusiasm to improve the efficiency of R&D innovation,so as to further keep the performance of enterprises in the fierce market competition to maintain a steady rise.Therefore,many high-tech enterprises begin to attach importance to internal incentives,and equity incentives as a long-term incentive mechanism for enterprises to encourage and retain talent,gradually showing its unique advantages.Firstly,this paper expounds the related concepts and theoretical basis of equity incentive and operating performance,and then introduces the specific implementation of Huawei equity incentive in two stages,including the growth exploration stage and the mature development stage,and makes a comparative analysis according to the specific implementation of the two stages.This paper studies the impact of Huawei equity incentive on business performance,including the analysis of influencing factors of business performance,empirical analysis of the correlation between equity incentive and business performance,Huawei's financial performance analysis,non-financial performance analysis,and the comparative analysis with ZTE's implementation of equity incentive and the impact on business performance.In conclusion,the financial performance analysis includes profitability,operation ability,solvency and development ability analysis,while the non-financial performance analysis includes market share,R&D expense rate and patent application quantity analysis.Based on the above analysis,it puts forward some measures and suggestions to improve the equity incentive system of private enterprises.Through the study of this paper,it is not only helpful to provide reference for the enterprises that intend to implement equity incentive in the future when designing equity incentive scheme,but also helpful to provide corresponding reference for the enterprises when choosing the specific incentive mode of equity incentive,so that they can make management decisions suitable for the future development of enterprises in combination with their own factors and external environment.