Research On The Motivation And Performance Of Equity Incentive For Join Laboratorries

The improvement of national living standards and the increasingly serious problem of population aging have put forward updated development needs for China’s medical industry.Therefore,the government has issued opinions on conducting consistency evaluation of generic drug quality and efficacy,optimizing drug registration review and approval,and promoting the development of innovative drugs in China through policies such as "4+7 mass procurement".Due to the long cycle,high difficulty,and high technical requirements of developing new drugs,there are three major difficulties.Therefore,outsourcing some research activities to organizations specialized in providing specialized outsourcing activities for drug research,known as CRO enterprises,has become a choice for many pharmaceutical companies to develop new drugs.Under the dual promotion of policies and demand,the CRO industry has also developed rapidly in China,but there has also been a serious competition for talent within the industry.The equity incentive system originated in the United States as a mechanism that can optimize the structure of a company’s talent team,bind the personal interests of the incentive objects with the long-term interests of the enterprise,and form long-term incentives,has gradually been adopted by CRO enterprises.However,CRO enterprises have a relatively short duration of existence in China,and companies in the industry have relatively little experience in implementing equity incentives.Therefore,there are also some phenomena where the equity incentive plans of CRO enterprises have not been implemented or have not achieved the expected incentive effects.Therefore,it is crucial for the CRO industry to conduct research on equity incentive plans and their effects in order to explore reasonable and effective equity incentive plans that are suitable for the characteristics and development of the CRO industry.The event study method was used to study the market reaction of JOINN Laboratories’ s four equity incentives,and the impact of equity incentives on the company’s financial performance was evaluated by comparing the profitability,solvency,growth ability and operating ability of JOINN Laboratories before and after the equity incentive,as well as economic value added and Tobin Q value.Compare and analyze the turnover situation and employee structure of employees before and after the incentive of JOINN Laboratories,and analyze the impact of equity incentives on personnel mobility of JOINN Laboratories from the perspective of innovation input and output.Analyze the incentive results of equity incentives on innovation of JOINN Laboratories.Finally,after analysis,it was concluded that implementing equity incentives has a promoting effect on the overall financial and non-financial capabilities of JOINN Laboratories,greatly improving the number and quality of team talents in the company,and also having a significant promoting effect on the company’s innovation activities.Finally,based on the motivation and effectiveness of implementing equity incentives for JOINN Laboratories and other companies in the CRO industry,the following suggestions are proposed for designing equity incentive plans in the future: the design of equity incentive plans should consider the development stage of the enterprise,moderately increase incentive intensity,extend incentive period,and design diversified assessment indicators that meet the characteristics of enterprise development.On the one hand,this article enriches the correlation between equity incentives and corporate performance,expands the research on corporate performance,and on the other hand,explores how to design equity incentive plans that can have a more significant incentive effect on the performance of CRO enterprises,which has positive significance.