Research On Evaluation Of Equity Incentive Effect Of High-tech Companies

With the continuous development of economy and technology,the competition in the whole high-tech industry is becoming increasingly fierce.Due to the late start of China's high-tech development,the slow development of new technologies and the low practicality,high-tech companies urgently need to accelerate the pace of development.The indispensable resources for the development of high-tech companies are high-quality talents.How to rationally and maximize the value of the company's high-quality talents and enhance the comprehensive strength of high-tech companies has become a problem faced by many high-tech company owners.Equity incentives provide an answer to this dilemma.The equity incentive is based on the company's stock,and it is a long-term incentive for the company's senior management,directors,and core technical personnel.The implementation of equity incentives can solve the existing management defects of the company,stimulate the innovation ability of core technical talents,alleviate the loss of scientific and technological talents,and supplement the defects of existing enterprise incentive mechanisms.After the implementation of equity incentives,the company's management and core employees become the owner of the equity as well as the shareholders.Later,they will be more fully engaged in the work,share the wealth with the company,face the difficulties and risks of the company,and share them together.The company's profits,hard work and continuous efforts to contribute to the company's long-term development with its own maximum ability,thus helping the company to become bigger and stronger.China's equity incentives started late,until the stock reform in 2006,the equity incentives began to gradually enter the vision of various companies in China.There are certain gaps between China's high-tech company's equity incentive plan and foreign developed countries.Many aspects are still not perfect.There are no systematic laws,regulations and policies to ensure the smooth implementation of equity incentives.At the same time,there is an urgent need for a large amount of research on high-tech companies' equity incentives.In this paper,the case analysis method is the main method,combined with the comparative analysis method and other normative research methods,and selects IFLYTEKCO.LTD as the research object.As a successful high-tech company,IFLYTEKCO.LTD has implemented more than two equity incentives and is separated by three years.Above,the two equity incentives are all aimed at incentives.No major shareholder spouses and immediate close relatives participate in the incentives,and do not reflect the interest transfer.There is no significant change in the nature of the company,the capital composition,and the size of the company during the implementation of the equity incentives.This article starts with the two equity incentives of IFLYTEKCO.LTD to verify whether the equity incentives will have a role in high-tech companies and whether the design of different incentive schemes will have an impact on the effect.Combined with the industry characteristics of high-tech companies,from the aspects of incentive scope,incentive model adopted and design of exercise conditions,some suggestions for how to design equity incentive schemes for high-tech companies are put forward,in order to maximize the effect of equity incentives.Promote the continuous development of high-tech companies.The innovation and contribution of this paper is :(1)Add managerial behavior indicators so that you can study the company's operational development in all aspects.This paper studies high-tech companies.The core competitiveness of high-tech companies is reflected in the quality and vision of the company's executives.Therefore,this article points to the characteristics of high-tech companies,including managerial behavior indicators,including sales expense ratio.The management expense ratio and R&D expenses account for the proportion of operating income,which is convenient for studying the effect of equity incentives.(2)By adding innovative performance indicators,we can intuitively understand the development of equity incentive companies.In the existing literature,most scholars focus on the performance of financial performance,while less people pay attention to the performance of innovation performance.This paper studies hightech companies,high.The competitiveness of technology companies relies heavily on core technical staff.Therefore,in view of the characteristics of high-tech companies,this article adds innovative performance indicators,including the number of newly acquired software copyrights,the number of newly acquired patents and the number of technical personnel,which can more intuitively see the development of the company after the implementation of equity incentives.(3)Using the latest data comparison,the timeliness of evaluation results is improved.This paper counts 12 financial performance data,3 manager behavior data and 3 innovation performance data from 2009 to 2017.A total of 162 data is covered in time.The two-phase equity incentives of IFLYTEKCO.LTD Company are relatively new and comprehensive.