Research On The Influence Of Jafron Biological Equity Incentive On Corporate Performance

In modern enterprises,the separation of ownership and management rights has led to the emergence of principal-agent problems.Although the principal-agent problem may seem simple,it can actually have a significant impact on the operation and management of enterprises.Therefore,the main direction of current research in corporate governance is how to minimize conflicts between institutions.At present,it is widely believed that in addition to establishing strong management mechanisms,effective reward mechanisms are important tools for reducing conflicts between institutions.Existing research focuses on salary contracts,promotion incentives,equity incentives,etc.,mainly exploring how to effectively alleviate agency problems.The short-term nature of salary contracts and incentive measures such as promotions makes it easy for management to breed short-sighted behavior,and equity incentives,as a long-term incentive mechanism,have become an important mechanism to alleviate agency conflicts.Equity incentives are mainly aimed at providing ownership incentives,allocating a certain amount of company shares for the purpose of incentives,in order to promote the convergence of interests between incentivized shareholders and beneficiaries,and ultimately achieve shareholder wealth appreciation and long-term development goals of the company.Currently,more and more Chinese listed companies have implemented equity incentive plans.From an industry perspective,most of the companies implementing equity incentives are in industries such as software services,electronic components,mechanical engineering,and biopharmaceuticals.Among them,most companies implementing equity incentives in the biopharmaceutical industry are pharmaceutical companies or companies producing medical devices.Therefore,this article selects Jianfan Biotechnology,an outstanding representative of enterprises in the medical device manufacturing industry that have implemented equity incentives.After years of development,Jianfan Biology has become a listed company specializing in the research and development,production,and sales of medical devices related to blood diseases.In order to reduce operating costs,improve corporate governance,improve corporate performance,and help the company retain core talents,Jianfan Biology issued the Restricted stock incentive plan for the first time in 2016 and successfully implemented it.In the following years,companies took advantage of the hot iron and announced the implementation of equity incentives.As of2021,a total of five equity incentives had been announced.So,further research is needed to determine whether the implementation of equity incentives for Jianfan Biotechnology has promoted the development of the enterprise,achieved the purpose of implementing incentives,and what impact multiple equity incentives have on the performance of the enterprise.This article is based on a systematic combination of equity incentives and company performance related theories,using financial and non-financial data from Jianfan Biotechnology for in-depth research.Economic value added is introduced to analyze its profitability in financial performance research,and the impact of Jianfan Biotechnology’s equity incentives on its performance is studied.