Research On The Impact Of Chinese Listed Enterprises' Equity Incentive On Corporate Performance

Equity incentives are the product of the development of the capital market.The separation of the shareholders and managers in the company has clarified the responsibilities of them,and refined the division of labors,but the inconsistency of the fundamental interests of the two has also led to the problem of entrusted agency.In this context,equity incentives began to sprout.In 1952,Pfizer Corporation of the United States introduced the first option plan to company managers due to the need for tax avoidance,and equity incentives opened a new era.As an effective method to alleviate the principal-agent problem,equity incentives have been generally favored by Western countries after their emergence,and have been widely used in the West within 30 years.It was only 40 years later that China began to introduce equity incentives.From the 1990 s to the present,the practice of equity incentives in China has shifted from a period of exploration and adaptation to a rapid period of reform and development.China attaches great importance to the development of science and technology enterprises,and actively promulgates regulations to guide them to better implement equity incentives.This article selects the Internet technology company Xiaomi Corporation to conduct a case analysis,it explores the impact of equity incentives on corporate performance among China's listed companies,which through the analysis of the Xiaomi Corporation's two equity incentive plans.The full text focuses on two major research purposes:(1)Combining the relevant theoretical basis of equity incentives,try to establish an evaluation system for the effectiveness of equity incentives for technology companies around the company's performance.(2)Use the established effect evaluation system to evaluate the implementation effect of Xiaomi Corporation's equity incentives,so as to explore the impact of equity incentives on company performance.The main content of this article is to summarize and analyze the relevant basic theories and existing literature results of equity incentives,combined with industry characteristics,it is concluded that the evaluation system of equity incentives for technology companies should include market performance,innovation performance,human performance and financial performance.Then use the evaluation system to analyze the implementation effects of the Xiaomi Corporation's two equity incentive plans and draw conclusions.On the one hand,this research can make up for the lack of current scholars' research on the effectiveness evaluation system of equity incentives,and provide a theoretical reference experience for future companies when evaluating the implementation effects of equity incentives;on the other hand,it has certain practical significance to use the system to analyze and explore the impact of equity incentives on Xiaomi's performance,and propose relevant suggestions and industry inspirations.