Research On The Implementation Effect Of Equity Incentive In Science And Technology Innovation Board Enterprises

China first introduced an equity incentive scheme in the early 1990 s,and it was intensively implemented in enterprises after the implementation of the equity share reform in 2005.In an environment where China’s economy is shifting from high-rate growth to high-quality growth and from capital input-driven to innovation-driven,China’s Science and Technology Innovation Board was officially opened in June 2019 in order to better guide the capital market to promote the rapid development of the country’s high-tech industries.The high investment in research and development and the high demand for professional and technical talents make it particularly important to attract and retain innovative entrepreneurs and technical backbones through an equity incentive scheme and a corporate governance mechanism of "benefit sharing and risk sharing".In the past,the equity incentive mechanism mainly targeted the Main Board market,and its incentive function could hardly be given full play in the STB market.Therefore,in order to stimulate the innovative energy of enterprises to a greater extent,the SFC has made a series of useful explorations and innovations in the equity incentive system of the STB,and introduced an innovative equity incentive mechanism according to the characteristics and development needs of STB enterprises.For companies listed on the STB,the innovation of the equity incentive system provides them with more advantages over other listed companies in the sector,while at the same time they face new challenges due to the short period of time since their establishment and the lack of perfection in various aspects.Therefore,it is important to study how to optimise the equity incentive system of the STB market and guide it to stimulate companies’ innovation in the long run.In this paper,we have adopted the case study method to study the effectiveness of the implementation of equity incentive of Zhongwei Company.Zhongwei Compan was the first company to use stock appreciation rights in conjunction with restricted stock for equity incentives and had the second highest share of equity incentives,after Lanqi Technology.By studying the design and implementation effect of their equity incentive schemes,it has certain implications for the improvement of equity incentive mechanism in the STB market.This paper will first count and sort out all the equity incentive schemes between the opening of the board and 18 September 2022 in order to portray the equity incentive characteristics of listed companies on the board.After that,we focus on Zhongwei Company,sort out the process and results of Zhongwei Company’s implementation of equity incentive,summarize the path to achieve the effect of Zhongwei Company’s implementation of equity incentive,and then analyze the effect of Zhongwei Company’s implementation of equity incentive from three aspects: financial effect,non-financial effect and market response effect.By comparing the performance before and after the implementation of equity incentive,the performance of benchmark companies in the same period and the average performance of listed special equipment manufacturing companies in the same period on the STB,we summarize the advantages and shortcomings of Zhongwei Company’s equity incentive program with reference to the characteristics of the overall program of the STB,and propose specific suggestions for improvement based on these shortcomings.This article takes the equity incentive of the STB as the starting point,and corroborates and improves the theory related to the equity incentive of the STB in three aspects,namely the equity incentive system,the equity incentive scheme and the performance of the equity incentive after implementation,and on this basis,further discusses the challenges faced in its application to the STB and gives relevant countermeasure suggestions,with a view to contributing to the existing research.