Analysis Of The Impact Of Equity Incentive On Enterprise Performance In NAURA

The high-tech industry,as a forward-looking industry that China focuses on,has gradually become the key to economic development in recent years.However,with the development and progress of the Chinese market,competition between industries has become increasingly fierce,and the problem of principal-agent has gradually become prominent.Enterprises are beginning to try new methods to reduce principal-agent costs and continuously enhance their core competitiveness.In the early 1990 s,China began the exploration of equity incentive models.The equity incentive model grants a certain number of company target stocks to the incentive objects after they meet the performance evaluation requirements specified by the company,tying their personal interests with the interests of the enterprise,and achieving convergence of interests,promoting the long-term development of the enterprise.Nowadays,more and more scholars are conducting in-depth research on the impact of equity incentives on corporate performance from both theoretical and practical perspectives.This article takes Naura as the research object.The company implemented two consecutive equity incentive plans in 2018 and 2019,respectively.The incentive models and scope used in these two incentive plans are different,and the incentive validity period is long,which has certain research significance.This paper first describes the research background and significance of the article,and combs the relevant literature on equity incentive at home and abroad as the research basis of this article.Secondly,this paper takes the development status of the semiconductor industry and the implementation of equity incentive as the background,combines the implementation process and results of the company’s equity incentive,and uses the event study method to analyze the short-term market response of Naura,Further study the changes in short-term performance of the company;Using financial indicator evaluation method,comparative analysis method,and EVA evaluation method to analyze the long-term performance of enterprises from multiple perspectives,comprehensively judge the impact of equity incentives on enterprise performance,and point out the problems in the process of equity incentives in Naura,and based on this,propose countermeasures and suggestions.This article found through research that the implementation of equity incentives in Naura has a positive impact on the company’s short-term performance,with a clear short-term market response that can attract more potential investors in the market.In terms of long-term performance,although the implementation of equity incentives does not have a significant incentive effect on the company’s debt paying ability and operational ability,it has a positive impact on the company’s profitability and development ability;By comparing the changes in non-financial indicators before and after the implementation of equity incentives in enterprises,it was found that the R&D investment of the enterprise has significantly increased,achieving the goal of attracting and maintaining core employees of the company.The R&D output has increased,and the company’s competitiveness has been effectively improved.Finally,by calculating the company’s EVA value,it was found that the implementation of equity incentives significantly improved the company’s corporate value and played a positive role in the long-term development of the company.Although there are some shortcomings in the design and implementation process of equity incentives for Naura,overall,the implementation of equity incentives for Naura has played a positive role in promoting corporate performance.