Comparative Research On Financial Performance Of Mengjie Home Textiles Before And After Equity Incentive

With the implementation and update of equity incentive policies and regulations,as well as the continuous improvement of corporate system management,many listed companies began to try this method to achieve the purpose of motivating employees and promoting enterprise development,This also promotes equity incentives as an important means for listed companies to improve incentives,corporate governance,and promote strategic goals.Equity incentive refers to giving the incentive object the priority to purchase the company’s original securities,so that it can enjoy part of the company’s equity in a practical sense,and participate in decision-making,enjoy dividends and take risks in the role of company shareholders.The advantage of this incentive method is that it can make enterprises taste the sweetness of reducing operating costs,improving the governance system,and reducing the flow of talents,In addition,this long-term incentive supervision method can also provide beneficial promotion for the company’s competitiveness and cohesiveness.However,the results of practice show that not all companies that implement equity incentives can achieve the desired results,and sometimes the incentive results are even contrary to the original ideas,It can be seen that only by formulating appropriate equity incentive plans can enterprises have a positive impact on corporate performance and promote sustainable development of enterprises.As one of the leading brands in the national textile industry,Mendale Household Textiles has a long history and has developed well,In 2013,it began to implement a four-year equity incentive plan,This article takes this as an example to study the impact of the implementation of its equity incentive program on corporate performance,Based on the financial perspective,this paper combines the research status of equity incentives and financial performance by domestic and foreign scholars as the theoretical basis,introduces the basic concepts of equity incentives and financial performance,and describes in detail the specific implementation plan and implementation process of Mendale equity incentives.Then,based on the DuPont analysis method,the impact of various financial indicators after the equity incentive,and the EVA model is used to analyze the impact of the equity incentive on the performance of Mendale.Finally,based on the results of the case analysis,the proposed proposals for corporate equity incentives are proposed in a targeted manner,in order to provide reference for other SMEs to implement equity incentive plans,and to promote the continuous improvement of China’s incentive system.