Research On The Implementation Effect Of Equity Incentives In H Home Appliance Manufacturing Company

Since the 19 th National Congress,the country is focused on deepening the supply-side reform,and in the 14 th Five-Year Plan,the country has proposed to adhere to innovation to promote development,and the policy of carbon peak and carbon neutral,all of which have put forward higher requirements on the technological innovation capability of the home appliance manufacturing companies.Equity incentives play an important role in improving the R&D and innovation capabilities of home appliance manufacturing companies and in stimulating the creative abilities of technical personnel.Therefore,it is meaningful and valuable to discuss and study the effect of equity incentive implementation in home appliance manufacturing companies and make corresponding suggestions for the shortcomings in the implementation process.This paper selects H home appliance manufacturing company as the case study object,combines the existing research results,and takes "the implementation effect of equity incentive in H home appliance manufacturing company" as the core research content.The main answer to the question "What has been the effect of the implementation of equity incentives within and outside the company of H home appliance manufacturing company?".This paper firstly defines the concept of equity incentive and explains its theoretical foundation,and then composes the theoretical analysis framework of the effect of equity incentive implementation to provide relevant theoretical basis for the subsequent case studies.Next,this paper briefly introduces the situation of H home appliance manufacturing company,and analyzes the motivation,program content and implementation results of the equity incentive of H home appliance manufacturing company.Then,based on the theoretical analysis framework in the previous paper,the paper analyzes the effect of the implementation of equity incentive within H home appliance manufacturing company.First,the financial performance is analyzed,including the analysis of traditional financial performance and the analysis of economic value added performance;then the non-financial performance of H home appliance manufacturing company before and after the implementation of equity incentive is analyzed.Finally,the external market reactions of the equity incentive firms of H home appliance manufacturing company are analyzed in both short and long term.This paper concludes that:(1)the implementation effect of equity incentive in H home appliance manufacturing company is more desirable: the implementation of equity incentive promotes the improvement of profitability and growth ability of the company,also enhances the ability of attracting talents and stabilizes the core talents to a certain extent,and improves the EVA performance of the company to a certain extent.The main reason is that H home appliance manufacturing company has a strong continuity of equity incentives and a higher emphasis on core technical and business personnel.(2)The implementation effect of equity incentive of H home appliance manufacturing company is also lacking: the effect of equity incentive in terms of operating capacity,solvency and product market share is not enough and the market response after the announcement of the last two phases of equity incentive is weak.The main reasons are the single set of equity incentive performance conditions of H home appliance manufacturing company,the lack of scientific adjustment mechanism of equity incentive performance index of the company,and the imperfection of China’s capital market will affect the market reaction.The application value of this paper lies in:(1)Suggestions to help H home appliance manufacturing company improve the implementation effect of equity incentive in the future: choose the compound equity incentive model of stock options plus restricted shares;build a financial performance plus non-financial performance equity incentive performance assessment system;establish a dynamic adjustment system of equity incentive assessment index according to the situation of home appliance industry.(2)Suggestions from the macro policy level to help the equity incentive of home appliance manufacturing companies: to establish a preferential tax policy for equity incentive of technical R&D personnel;to improve the information disclosure system related to R&D situation and market share of home appliance industry.