Research On The Influence Of Equity Incentive System On The Performance Of Unlisted Companies

In recent years,the level of information technology in society has been increasing,the competition for talents is becoming more intense,and equity-based incentives,which can retain and attract talents,are gradually emerging into the public eye.The first modern equity-based incentives originated in the United States,and as they have evolved,they have become one of the most effective means of resolving principal-agent relationships.The equity-based incentives can link the interests of managers and owners,improve the efficiency of the company’s internal operation,and promote the growth of the company’s performance.The development of equity-based incentives has not only effectively solved the principal-agent relationship,but more importantly,closely integrated the personal development of employees with the long-term development of the company,prevented the loss of core staff and attracted talents to join the company,making a significant contribution to the improvement of the company’s performance.The current research on the impact of equity-based incentives on company performance is mainly focused on the level of listed companies,and little research has been done on unlisted companies.Therefore,studying the impact of unlisted companies on company performance can enrich the existing literature and provide proven practices for other unlisted companies to develop and implement equity-based incentives.As a model of equity-based incentives for unlisted companies,Company H’s multi-period equity-based incentives are worth studying and researching for unlisted companies.Therefore,this paper takes Company H’s equity-based incentives as the research object and adopts the case study method to analyze the relationship between equity-based incentives and company performance,and mainly analyzes the changes of financial and non-financial indicators of H company before and after the implementation of TUP plan.First,this paper compares domestic and international literature,provides an overview of the equity-based incentives system,and introduces related theories,and analyze the impact path of equity incentive system on performance.Secondly,it introduces the basic situation of H company,analyzes the motivation of H company’s implementation of equity incentive and summarizes the characteristics of equity incentive.Then,it analyzes the impact of H company’s equity incentive on the company’s performance from the two dimensions of financial indicators and non-financial indicators.In order to make the research conclusion more convincing,the economic value-added evaluation system is introduced into the non-financial indicators.After many aspects of analysis,it is finally concluded that the equity incentive of H company has a certain positive role in promoting the company’s performance.Finally,based on the above analysis,the enlightenment is obtained for other non listed companies.