The Evaluation And Research On The Performance Of Implementation Of Dahua Equity Incentive

With the improvement and development of the equity incentive system in China,equity incentive has been paid more attention and been applied more by the listed companies.It has shown great potential in the process of exploratory implementation,and has also brought about many problems and confusion.Experts and scholars have different opinions on the performance of equity incentive.Dahua,as a private enterprise listed in small and medium-sized enterprises board in Shenzhen,have developed rapidly since the listing in 2008,and has now become the 2th company in world ranking in the video surveillance of the security industry.During this period,a total of two core equity incentive plans were implemented.This paper takes Dahua shares as the object of case study.On the basis of combing the domestic and foreign thesis and sorting out the relevant theories of equity incentive,it analyzes the implementation motivation and the design of equity incentive schemes of Dahua share equity incentive.And the implementation effect of Dahua shares is analyzed in depth,evaluated from three dimensions: using the event research method to evaluate the market performance on the date of announcement of the stock incentive schemes of Dahua and the cumulative excess rate of return;using the financial index analysis method to evaluate the financial performance in terms of profitability,solvency,operation ability and development ability before and after the implementation of equity incentive;using the longitudinal contrast method to evaluate the innovation performance of R & D investment and R & D production before and after the implementation of equity incentive.Then combined with the implementation results,the analysis of Dahua shares incentive advantages ia made,existing problems are exposed and the corresponding countermeasures are put forward.The study found that: the market response is positive after two times of equity incentive,but the second reaction is less obvious than the first one.The financial performance of the two equity incentives shows different effects.The first equity incentive effectively promotes the improvement of profitability,operation ability and growth ability while the second time has no significant effect on profitability,business ability,solvency and development ability.Equity incentive also promotes R & D investment,increases patent output,and is conducive to the long-term development of Dahua shares.In general,the first equity incentive of Dahua shares focuses more on short-term effects,while the second focuses more on long-term effects.This paper hopes to provide some reference for other Chinese companies to implement equity incentive through the case study of Dahua stock combining with theories.