Research On The Implementation Effect Of Hualan Biological Equity Incentive

With the introduction and improvement of the domestic equity incentive system,more and more listed companies begin to use the system.As a long-term system of encouragement,equity incentive system can retain core talents,improve performance level,improve salary incentive mechanism and enhance enterprise competitiveness by establishing a community of interests with shareholders and management as the main body.However,not all companies implementing the system will achieve the expected results.The effectiveness of the implementation of the system is closely related to the launch time,exercise quantity and incentive scope of equity incentive.Meanwhile,the importance of the pharmaceutical industry to people’s life was most incisive in the outbreak of COVID-19 in 2019.In this context,it is of great significance to study the implementation effect of equity incentive in biomedical industry.This paper takes Hualan biology,a biomedical enterprise,as the research object.Firstly,based on the relevant literature and research results of scholars at home and abroad,different discussion results on the motivation and implementation effect of equity incentive are obtained;Secondly,based on the three theories,this paper uses the case study method to study the implementation effect of equity incentive of Hualan biology in 2013 and 2018.Firstly,it introduces the motivation and plan of Hualan biological equity incentive,and then analyzes its implementation effect from five aspects: short-term market response,long-term financial performance,comprehensive performance,enterprise value and non-financial indicators;Finally,through the above comprehensive analysis,we draw relevant conclusions and enlightenment.The study found that: in the way of short-term market response,the capital market responded positively to the two equity incentives of Hualan biology,and the impact of equity incentives lasted longer in 2013;In terms of financial index analysis,the equity incentive in 2013 is conducive to improving the profitability,solvency and operation ability of Hualan biology,and the second equity incentive has improved the profitability and development ability of the enterprise;In terms of enterprise value evaluation,the implementation of equity incentive in 2013 and 2018 could help to enhance the enterprise value of Hualan biology,and the improvement effect of equity incentive in 2018 is more obvious;In terms of comprehensive performance evaluation,it is found that the comprehensive performance in 2013 and 2018 has been significantly improved;In terms of non-financial indicators,the equity incentive plan has realized the original intention of attracting talents and improving the staff structure,and promoted the up-grading of the enterprise’s scientific research and greative ability.Through the above research,it is found that the term of equity incentive tends to be long-term incentive,which is conducive to the retention of employees;Expanding the incentive scope and improving the incentive strength are conducive to improving the work enthusiasm of employees and improving the level of enterprise performance;The improvement of equity incentive assessment system is conducive to the realization of the original intention of enterprise incentive.