Cause And Effect Analysis Of Employee Follow-Up Investment Implemented By Hundsun Technologies

It’s the time when China comes to its 14 th Five-Year Plan,and it’s the important period our country vigorously promotes development,innovation and transformation to upgrade by reform,and the speed of comprehensively deepen reform will raise again.Chinese enterprises,as the main force of economy development,make further efforts to stimulate their own innovation ability,which is the key step to dig out production ability deeply for this period.Talents are the important resources influencing enterprises’ innovation ability directly under the background of new era,and every enterprise needs to design a mechanism of how to tie the interest and development of enterprises with talents under the fierce market competition.Facing the orientation of innovation-driven development under the background of new era,the incentive policies written by enterprises should be more inclined to bring in and retain talents.It may be difficult to match traditional stock incentives,represented by stock option,employee stock ownership plan and restricted stock,to the demands for wide scope of incentive objects,precise levels of incentive control and flexible measures of incentive needs.This is the reason why innovation of stock incentives is urge in the current time.Employee follow-up investment mechanism origins from business partnership system in real estate enterprises,and it is gradually adapted to some other non-real estate industry enterprises in recent years.In these enterprises,employee follow-up investment makes a supplement for stock incentives,and does be effective like stock incentives.However,due to its special construction,there are many characteristics deserved to explore,which are exposed in practical uses except for essential incentive effect.Not only could a new plan be supplied for enterprises when choosing ways to implement stock incentives,but also new ideas could be given for enterprises to innovate stock incentive mechanism thorough detailed study towards employee follow-up mechanism.Based on the combination of literature research method and case analysis method,this thesis organizes and summarizes the studies written by Chinese and overseas scholars,including aspects among causes of implementing stock incentives,stock incentive and enterprise performance,the effect of implementing stock incentives by enterprises and business partnership system.And the conclusion derived from the studies by Chinese and overseas scholars mentioned above is used as a theoretical base to apply to the case analysis.Employee follow-up mechanism is the main study object in this thesis,and the employee follow-up mechanism implemented by Hundsun Technologies is chosen to be the study case.Through the analysis of concrete employee follow-up investment plan including implementation causes,design assessment and implementation effect,this thesis makes a integral analysis aiming at employee follow-up investment mechanism from implementation cause to due effect,imaging the big from the small with the single case of employee follow-up investment implemented by Hundsun Technologies.This will give some theoretical support to extensive application among enterprises for the future.The main content structure of this thesis is in the following: Firstly,the background of employee follow-up investment implemented by Hundsun Technologies is briefly introduced in this thesis,and cause analysis of the employee follow-up investment implementation is made based on principal-agent theory,human capital theory and sharing economy theory.Secondly,the concrete plan and the implementation procedure operated by Hundsun Technologies are described using large numbers of words in the following part,and the special features of employee follow-up investment implemented by Hundsun Technologies are summarized in this part.In the part of the concrete plan of employee follow-up investment implemented by Hundsun Technologies,this thesis narrates from investment subject and ways to realize benefit respectively.While in the part of the concrete plan procedure implemented by Hundsun Technologies,this thesis summarizes and concludes the concrete measures about the employee follow-up investment implemented by Hundsun Technologies logically and continually from the four aspects of building employee follow-up investment platforms,setting up target companies,subsequent operation or changes and share transfer between employee follow-up investment platforms respectively.Then based on the concrete plan and procedure implemented by Hundsun Technologies,this thesis summarizes the setting features of employee follow-up investment in Hundsun Technologies from four angles of plan design,time to extend subscription right of employee follow-up investment,origin of employee follow-up investment stocks and equity circulation.Thirdly,the effect of the employee follow-up investment implemented by Hundsun Technologies is assessed from two aspects,financial performance and non-financial performance,respectively.Vertical comparison and horizontal comparison are made through comparing several indicators to assess the implementation effect of employee follow-up investment,and the route of how the employee follow-up investment implementation influences the enterprise performance is described.In this part,the assessment of non-financial performance is mainly described from the two aspects of market reaction and innovation performance,meanwhile,the assessment of financial performance is analyzed from the four aspects of growth ability,operating capacity,debt-paying ability and profitability.After the implementation of employee follow-up investment,as the data analysis shows,the stock price is expected to rise by outside investors in both short-term market and long-term market,and the innovation performance is improved significantly.At the same time,growth ability,operating capacity,debt-paying ability and profitability are improved comparatively.After analyzing effect of employee follow-up investment implemented by Hundsun Technologies,this thesis describes the route of how employee follow-up investment mechanism in Hundsun Technologies affects its enterprise performance from four aspects of salary system,agent cost,performance assessment and cash utilization.Finally,based on the analysis of the whole procedure from cause to effect aiming at employee follow-up investment implemented by Hundsun Technologies,some successful experience is summarized,and also basic reasons of why its employee follow-up investment mechanism makes a success come to conclusions.Furthermore,some inspirations about how to utilize employee follow-up investment mechanism facing more extensive company subjects are put forward based on this case.Through the case analysis of employee follow-up investment implemented by Hundsun Technologies,here come the conclusions: Firstly,employee follow-up investment makes employee realize a role transformation from vocation individual to business individual,and indirectly improves enterprise performance in the manner of influencing innovative performance.Secondly,employee follow-up investment is of a wide scope of applicable objects and of customization for applicable plans,which makes it realize a true incentive effect facing the entire staff theoretically,while other stock incentive plans can’t.Thirdly,employee follow-up investment realizes a just stock incentive by flexibly controlling the incentive level of those who attend employee follow-up investment through its unique plan design.To sum it up,Hundsun Technologies realizes a kind of stock incentive pairing to its strategic development by implementing employee follow-up investment.And this set of incentive mechanism is long-term constructive,which would be adapted to expansion of enterprise business in the future.Its incentive effect lasts continually,therefore,enterprise performance improves.Inspirations derived from this case analysis are listed below: Firstly,enterprises should consider their own strategy plan when they are making their stock incentive plan.Secondly,regulation and disclosure should be enhanced towards employee follow-up investment companies.Thirdly,employee follow-up investment mechanism could be popularized to more applicable fields.