Study On The Impact Of Internet Enterprise Equity Incentives On Firm Growth

Equity incentives are the products that entrepreneurs think of when they explore how to seek maximum employee incentives with limited funds.They are also one of the important ways of corporate governance in modern enterprises.As the value of human capital is constantly being recognized,equity incentives are also gradually become a means of human capital management.There are many studies on equity incentives by scholars at home and abroad,but the research objects are not targeted.This paper analyzes the impact of equity incentives of Internet companies on the growth of enterprises,and can enrich the theoretical research results of equity incentives in the Internet industry,with a view to providing some reference for Internet companies to implement equity incentives.The reason why this paper chooses the equity incentive of Internet companies as the research object is that in recent years,the deep integration of the Internet and various fields of society has changed our way of life and the way of production of society,which has had a tremendous impact on people's life and the development of society.Studying the equity incentives of Internet companies and making constructive suggestions for the healthy development of Internet companies can impose a positive impact on various fields of our society.This article selects Kunlun Wanwei,ranked 27th among the top 100 Chinese Internet companies in 2018.This paper is divided into five parts,the fourth part consists of Chapter 4 and Chapter 5,as follows:The first part is the introduction.This part introduces the research background and significance,research methods and research contents of this paper,including the research framework and possible innovations.The second part is the literature review and related theoretical foundations.In this part,we first summarize the relevant literature review on the effectiveness of equity incentives and the impact of equity incentives on firm growth at home and abroad.Secondly,it introduces the related concepts of Internet companies,including the definition,development characteristics of Internet companies and the characteristics of its employees;then,introduced the four main incentives for equity incentives,paving the way for the design of the equity incentive scheme for Internet companies in Chapter 3.In the end,the relevant theoretical foundations include corporate governance theory,principal-agent theory,and human resources.The theoretical basis of equity incentives,including resource theory,and the theoretical basis for corporate growth,including corporate life cycle theory and corporate growth theory.The third part is the design of equity incentive plan for Internet companies.Starting from the status quo of equity incentives of Internet companies,this paper summarizes the characteristics of equity incentives implemented by Internet companies,and analyzes the equity incentives of Internet companies from the perspectives of Internet companies' equity incentives,incentive periods and target sources.On the above,summarize the problems existing in the equity incentives of Internet companies and analyze the reasons for their problems.Finally,after understanding the status quo,problems and causes,design an equity incentive plan suitable for Internet companies.The fourth part is the case analysis and research part.Firstly,it introduces the basic situation of Kunlun Wanwei,including the company profile and development process.Secondly,it introduces the basic situation of Kunlun Wanwei two sets of equity incentive schemes and the implementation process and operation of the scheme;then,the equity incentive scheme of Kunlun Wanwei is compared with the Internet enterprise equity incentive scheme designed in Chapter 3,3.3,and it is pointed out that its merits and comparative analysis of its unreasonable existence;finally,by analyzing the three financial growth indicators including the total asset growth rate,main business income growth rate and net profit growth rate,and four non-financial growth indicators,including market share growth,user activity growth,R&D innovation growth and employee education growth to analyze the growth effect of Kunlun Wanwei's implementation of equity incentives.The fifth part is the conclusions and recommendations.The conclusions of the research are drawn,and corresponding suggestions are put forward for the problems existing in the case,in order to provide some reference and lessons for the implementation of equity incentives for Internet companies in the future.