Research On The Design And Implementation Effect Of Equity Incentives For Listed Companies In The Healthcare Industry

At present,the pace of population aging in our country is accelerating.At the same time,with the continuous improvement of people’s living standards,the per capita health care expenditure is also increasing year by year,and the public’s health care awareness is gradually increasing.My country’s medical health service market is rapidly expanding.Competition in the industry is also intensifying.How to improve the level of corporate governance and core competitiveness through incentives to management and core talents has become the key to listed companies in the healthcare industry to seize industry opportunities and occupy a strong market position.In 2016,the new equity incentive system was implemented and promoted in my country.The revised equity incentive policies are more flexible and applicable,which also increases the enthusiasm of listed companies to implement equity incentive plans.As an effective means to solve corporate governance problems,equity incentives can promote the consistency of the interests of management and shareholders,thereby alleviating principal-agent conflicts.So,can equity incentives help listed companies in the healthcare industry improve corporate performance? What kind of internal mechanism does equity incentives affect corporate governance? What kind of corporate governance effect will it have?These issues are worthy of our consideration and exploration.This article selects Aojiahua,a listed company in the healthcare industry,as the case study object,aiming to explore what kind of governance mechanism the case company has established through equity incentives to affect corporate governance,and what corporate governance effects are produced,which in turn affects the performance of the company’s performance level.At the same time,it will also discuss the advantages and disadvantages of the design of the equity incentive plan of the case company and how to optimize and improve it.This article first combs the literature and theoretically summarizes the research issues,constructs a theoretical framework and rigorous thinking for research development;A statistical description of the status quo and characteristics of equity incentives for listed companies in the healthcare industry found that the industry has its own unique incentive problems.Listed companies that implement equity incentives in the industry have overall performance preferences compared to listed companies that have not implemented equity incentives,and combine industry characteristics to make a reasonable explanation for this phenomenon,which also provides the conclusions of the case study in this article a strong support.In the case study part,firstly,the necessity of implementing equity incentives in the case company and the design elements of the scheme are analyzed and explained;in the process of analyzing the implementation effect of equity incentives,the establishment of"equity incentives→incentive and supervision mechanism→corporate governance→corporate performance According to the current situation of the increase in the shareholding ratio of institutional investors in the case company after the implementation of equity incentives,and combined with previous research literature,it is concluded that equity incentives can not only establish an incentive mechanism to form incentives for the company’s management and core employees.In addition to improving corporate governance,it is also possible to attract institutional investors to increase shareholding,thereby forming an external supervision mechanism for management,thereby improving corporate governance.This article further analyzes the corporate governance effect and finds that equity incentives can pass a certain degree of the role of incentives and supervision plays the role of governance.The resulting corporate governance effects include reducing the agency costs of the two types of companies,improving the company’s innovation efficiency to a certain extent,and restraining inefficient investment behavior.Active corporate governance effects will also further enhance the performance of listed companies.Long-term and short-term performance levels;at the end of the case study,evaluate the advantages and disadvantages of the case company’s equity incentive plan and give reasonable suggestions for optimization and improvement.The author hopes that the research in this article can continue to enrich the relevant theoretical research on the impact of equity incentives,corporate governance and corporate performance,and at the same time provide certain guidance and suggestions for the design and implementation of equity incentive programs for listed companies in the healthcare industry.The innovation of this article is mainly to use the form of case study combined with literature summarization to propose that the path of equity incentives on corporate governance is to establish an incentive mechanism to promote the convergence of the interests of management and shareholders on the one hand,and on the other hand to attract institutional investors to increase their holdings.In order to establish a certain external supervision mechanism to influence the behavior of management and major shareholders,and optimize corporate governance.In terms of the optimization design of the equity incentive plan,the concept of using the championship theory is proposed and the design concept of improving the company-level performance evaluation standard in the design of the equity incentive plan can provide guidance for the subsequent design of the equity incentive plan.