Research On The Effect Of Topband’s Equity Incentive On Corporate Performance

In modern business operation,more and more companies have chosen to use equity incentives to retain talents,solve the proxy problem between shareholders and management,improve corporate performance and make the company better in the competition.At present,domestic and foreign scholars do not have a unified conclusion on the relationship between equity incentives and corporate performance,and most of them believe that equity incentives can improve corporate performance.However,some scholars believe that there is no necessary connection between the two.Most of the previous studies focus on the large sample group of listed companies implementing equity incentives,and there are fewer studies on the relationship between the implementation of equity incentives and corporate performance of listed companies in specific industries.Therefore,it is necessary to study the equity incentive programs of specific companies.This paper selects Shenzhen Topband Co.,Ltd.to study the influence of equity incentives on its corporate performance.The purpose is to study how the relationship between equity incentive and corporate performance exists in Topband,whether equity incentive is deficient or not,and then to find out the problems and give suggestions through the analysis,and finally to get the conclusion.Corporate performance can be affected by a variety of factors,and this paper focuses on equity incentives as the entry point to study its impact on corporate performance.This paper selects Shenzhen Topband Co.,Ltd.as the research object,based on the theory of principal-agent and human capital,firstly,it introduces the background and motivation of the implementation of Topband’s equity incentive program,and gives a detailed explanation of the four phases of equity incentive implementation program launched and the specific completion situation.Secondly,based on the relevant financial data of Topband,we analyze the profitability,solvency,operating capacity and growth capacity of Topband before and after the implementation of equity incentives by selecting financial indicators.Secondly,the non-financial indicators are selected to study the turnover rate of incentive recipients,staff stability,R&D capability and stock market reaction before and after the implementation of equity incentive in Topband.The specific changes of the financial and non-financial indicators of Topband before and after the implementation of equity incentive are analyzed,and whether the equity incentive can have a positive incentive effect on the enterprise performance from both financial and non-financial perspectives.Finally,in view of the shortcomings of the equity incentive of Topband,we propose the optimization suggestions from flexible selection of incentive methods,enriching performance evaluation indexes,scientific design of exercise conditions and appropriate extension of incentive validity period.Through the above research,we hope to improve the scientific nature of the equity incentive plan of Topband to achieve the best incentive effect,and at the same time,we hope to provide some experience for the implementation of the equity incentive plan of the same type of high-tech enterprises in the future.