Research On The Impact Of Equity Incentives On Investment Behavior Of Home Appliance Companies

With the increasingly fierce market competition,in managing the company,the business owners need professional managers to assist them.However,due to the separation of powers and the difference between the Managers and operators,Incurred agency fees,which affected the company's development.In this context,the equity incentive system has gradually gained attention.It binds the manager's own interests with the company's interests by forming certain incentives and constraints on the incentive objects,effectively reducing their short-sighted behavior in company investment decisions.it affects the company's investment decision-making behavior,ameliorates the efficacy of the company's investment behavior,promotes the company's ultimate development goal.This shows that equity incentives have an important impact on the investment behavior of enterprises.In addition,since the“Belt and Road” initiative was put forward,my country has successively introduced a series of policy documents to promote investment and cooperation.which aims to optimize and improve the “Belt and Road” initiative.The trade and investment environment in the "One Road" area promotes two-way investment,which shows that the investment behavior of enterprises not only determines their own development,but is also a very important part of my country's overall economic development.In the past,scholars' research on equity incentives mainly used empirical research methods to explore the impact of equity incentives on investment behavior.And this article is based on the perspective of equity incentives to ease the principal-agent contradiction and avoid managers' investment short-sighted behaviors and self-interested behaviors,using case law to conduct research.The research time span of this article is of long-term nature.From a long period of time after the implementation of the equity incentive plan,we examine whether the company's investment behavior has been affected and changed,and what kind of changes have occurred.This article selects Zhejiang Supor Co.,Ltd.'s long-term equity investment,fixed assets,intangible assets,R&D expenditure,EVA and EVAs and other related financial indicators,and analyzes the investment behavior and investment efficiency of Supor before and after the implementation of four different equity incentive plans.Study how equity incentives affect the investment behavior of listed companies in my country,and analyze the impact of different design factors of equity incentives on company investment behavior.Finally,two conclusions are drawn: First,the equity incentive plan has a positive effect on the investment behavior of the enterprise,and the equity incentive can promote the expansion of the investment scale of the enterprise;second,in the equity incentive design factor,choose the incentive of restricted stocks Mode,including middle-level core personnel into the scope of incentive objects,and adopting a combination of ratio and fixed value exercise conditions can improve the efficiency of corporate investment.Finally,this article suggests that when formulating equity incentive plans,companies should choose an incentive model suitable for their own development,expand the scope of incentive targets,set the exercise conditions of the combination of ratio indicators and fixed indicators,and at the same time,the company should cultivate a sense of belonging for professional managers.1.The state should improve the equity incentive system to ensure that equity incentives can achieve the expected goals.