Research On The Influence Of Equity Incentive Contract Design On Enterprise Investment Behavior

Investment activities play an important role in the growth of modern enterprises,which is not only the foundation of the sustainable development of enterprises,but also the investment efficiency is related to the future growth and value performance of enterprises.At present,China is in an important period of high-quality economic development and resource allocation optimization.Using equity incentive as a long-term incentive tool to improve the company's investment behavior and improve the investment efficiency is crucial to the sustainable development of the company.However,the key of equity incentive lies in the design of contract elements.Scholars at home and abroad generally regard equity incentive as a contract with the same nature,without elaborating the design of contract elements.Therefore,this paper takes the contract design of equity incentive scheme as the starting point,discusses the influence of equity incentive contract elements on the company's investment scale and investment efficiency,and proposes targeted optimization strategies.Based on literature review and theoretical analysis,this article clarifies the mechanism of Equity incentive contract design affects enterprise investment behavior:Contract design affects investment scale and efficiency by influencing management decision?Based on this,taking Sunlord electronic restricted stock incentive scheme as the research object,this paper first introduces the arrangement of equity incentive contract design from two perspectives of the company's basic situation and incentive scheme.Secondly,through comparative analysis and industry data,it is found that the contract design of Sunlord electronic equity incentive positively affects the investment scale and efficiency to some extent,and the influence of the second phase of equity incentive on the investment scale and efficiency is better than that of the first phase.Then,it is found that there are some unreasonable points in the contract plan with the framework of action mechanism.The incentive object of equity incentive in the first stage is unreasonable,and the incentive conditions are harsh and do not conform to the law of market development.Such contract arrangement makes the management more inclined to invest in the projects with high short-term returns,resulting in low investment efficiency.Finally,in view of the fact that the design of equity incentive contract of Sunlord Electronics affects the investment behavior of enterprises,and incorporated improvements found in case studies,the following conclusions and suggestions are drawn: reasonable and appropriate design of equity incentive contract will positively affect the company's investment scale and investment efficiency.Enterprises should rationally choose their own incentive mode according to their own development characteristics and the changing situation of the industry,instead of sticking to a single mode.Enterprises should also select incentive objects in a targeted manner,and pay more attention to employees who have made significant contributions to the core capabilities of the enterprise,rather than choosing the scope of incentive objects only by their position level.In addition,only by matching the incentive level with the position level of the target can the employees of each department find their own position and improve their work enthusiasm.Finally,the incentive conditions should reflect the constraint,which should not only be linked with macro industry economic development trend,but also should consider the future development trend of the enterprise,and should properly and strictly set up multidimensional assessment standards.The possible creativity of this paper is to tease out the framework of the influence of equity incentive contract design on enterprise investment behavior based on the logic of "equity incentive--contract design--manager decision--investment behavior",and use typical cases to deeply understand the influence of equity incentive contract design on investment scale and investment efficiency.Hope this study can bring certain help to other companies.