Research On The Impact Path And Effectof Equity Incentives In Chemical Industry

The chemical industry is the pillar industry of the national economy.Under the guidance of national policies,the chemical industry has established sound industry standards and tax policies,and the economic added value generated by its products and services has created greater tax revenue for the state.In addition,in order to drive the rapid development of the chemical industry,the state pays more attention to technological innovation,invests more factors to solve the problem of technical constraints,and the chemical industry has gradually become a market for policy dividends.In order to attract more core technical personnel and increase the high-end and intelligent development of enterprises in the industry,many companies have begun to implement equity incentives.However,from the actual situation,its implementation effect is affected by multiple factors,and how to design an incentive program that exerts maximum effectiveness and can achieve the predetermined goals of the enterprise is a problem that many enterprises deserve attention.Based on this,this paper selects Dinglong as a case company to study the impact path of equity incentive and its incentive effect.Firstly,this paper comb the research directions of equity incentives from domestic and foreign,and summarizes the relevant concepts and theoretical foundations.Secondly,the overall trend of the implementation of equity incentives in the chemical industry is described,and the four impact paths of equity incentives are sorted out.Thirdly,the motivation of Dinglong Co.,Ltd.to implement equity incentive and the design differences of incentive elements of the three incentive plans are analyzed.Then,the equity incentive effects that directly affect the path are analyzed from the perspective of market response and the company’s financial performance,and the equity incentive effect of the three indirect impact paths is analyzed from the perspective of executive operation efficiency,R&D innovation ability,and overall employee quality.Finally,combined with the research conclusions of case companies,the shortcomings of equity incentives in the chemical industry are analyzed and optimization suggestions are put forward.It is found that the equity incentive plan of Dinglong shares is constantly adjusted to the company’s development stage and market environment,and the design elements are gradually improved,but not all of the three equity incentive plans have a significant improvement effect on the company’s performance.From the perspective of short-term market reactions,the capital market has shown a relatively optimistic attitude towards the first two equity incentives.From the perspective of financial performance indicators,the three equity incentive plans have different degrees of impact on the basic indicators of the company’s financial analysis,but the company’s economic added value continues to rise.Based on the indirect impact path,the second equity incentive plan of Dinglong Co.,Ltd.is more effective in reducing the cost of entrustment and agency and improving operational efficiency;During the three equity incentive plans,Dinglong Co.,Ltd.focused on improving the innovation ability of enterprises and promoting the transformation of achievements;At the same time,equity incentives give full play to their initiative,improve the quality of employees and stabilize employees for a long time,laying the foundation for the company’s high-quality development.However,the equity incentive plan of the chemical industry represented by Dinglong Co.,Ltd.currently has the problems of blindly following the trend,low incentive strength and lack of emergency measures,which needs to be further improved,so as to enhance the positive role of the equity incentive system in promoting the high-quality development of the chemical industry.