Research On The Implementation Effect Of Equity Incentives Of Rongbai Technology,a Company On The Science And Technology Innovation Board

The establishment of the Science and Technology Innovation Board is an important strategic deployment to improve China’s capital market,and a new starting point for China’s capital market to move towards diversification,institutionalisation and marketisation.In order to attract and stabilize the talent pool,enterprises have introduced a large number of measures to support the orderly development of enterprises.Among them,equity incentive is an important measure to attract talents,which has gradually become normalized in enterprises.For companies listed on the Science and Technology Innovation Board(STB),their high-tech innovation features require a large number of technical talents to help them improve their R&D and innovation capabilities.There is an urgent need for STB companies to adopt incentive measures to retain core talent and attract the best talent to provide a strong guarantee for the long-term development of the company.Against this background,this paper takes a case study of Rongbai,a leading company in the new energy materials manufacturing industry,to analyse the content features of its corporate equity incentives and explore the effectiveness of its equity incentive implementation.This paper firstly reviews the literature on equity incentives at home and abroad,and then explains the situation of the Science and Technology Venture Exchange and its special provisions on equity incentive schemes.Secondly,it introduces the selected case company,Rongbai,analyzes the motivation for its implementation of equity incentives and reviews the specific contents of its two equity incentive schemes.This is followed by an evaluation of the effectiveness of the implementation of Rongbai’s equity incentives in terms of market response,financial performance and non-financial performance.The study found that: equity incentives have contributed to the improvement of the company’s profitability,operating capacity and growth capacity,creating value for the company,as well as promoting the quality of employees,reducing agency costs and improving operational efficiency.However,equity incentives have a negative impact on the solvency of the company,making the company’s solvency decrease and financial risk increase.In addition,the incentive effect of equity incentive on the innovation ability of the company was insufficient,the ratio of R&D investment to operating revenue of the company was reduced,and external investors also took a calm wait-and-see attitude towards the implementation of the equity incentive scheme.In conclusion,the above analysis results have led to corresponding suggestions for improvement of the problems in the equity incentive scheme of Rongbai.It is hoped that Rongbai and other KCI companies will continue to improve the content of the scheme when implementing the equity incentive plan in the future in order to achieve better incentive results.