A Research On The Effect Evaluation Of Equity Incentive For Espressif Company

Equity incentive,as one of the effective means to solve the agency problem,has been widely used in corporate management.The second type of restricted stock,as a new incentive tool for the SSE STAR MARKET,however lacks relevant research on its implementation and incentive effect.Whether it has a promoting influence for the company of the SSE STAR MARKET remains to be discussed.This thesis analyzes the implementation of the second type of restricted stock used by Espressif Technology as an equity incentive tool,so as to evaluate its implementation effect and supplement the lack of study on the second type of restricted stock.This thesis selected The Espressif Technology issued three equity incentive plans,all of which selected the second type of restricted stock as the incentive tool,and each time had some changes compared with the last plan,reflecting the exploration and improvement of the company when using a new incentive tools,so the case is representative and worth studying.The research of Espressif Technology’s three equity incentive plan mainly consists of short-term market reaction,financial performance analysis,non-financial performance analysis and comprehensive evaluation system.In the short-term market reaction part,the event study method is selected,and CAR and AR are used as evaluation indexes to reflect investors’ attitudes through the change of stock prices.Part of the financial performance and non-financial performance based on the balanced scorecard,which help to to select the representative index from different dimensions to analyse,finally combine all the index by using analytic hierarchy process to establish a comprehensive evaluation system,by scoring all kind of index of the the company to compare the result for using the incentive tools and not to find out it works or not,so to analyse whether it has a positive effect towards company.It is found that two of the three incentive plans have a good market response,and investors hold a positive attitude towards the implementation of equity incentive plans;Through financial and non-financial analysis,it can be found that the improper setting of unlocking conditions is not conducive to the best effect of equity incentive.Only by constantly adjusting and groping the scheme according to the actual situation of the company can the company improve its operating income and profitability,improve scientific research technology,and stabilize its leading position in the field.