A Case Study On The Implementation Of Yankershop Food Equity Incentive

As a long-term incentive mechanism,equity incentive effectively solves the principalagent problem arising from the separation of two rights in modern enterprises.The fundamental starting point of equity incentives is to form a community of interests between employees and enterprises to achieve "co-creation of value,risk-sharing,and benefitsharing" The promulgation of the management measures has created a good environment for the implementation of equity incentives for listed companies in China and provided better institutional guarantees.With the continuous improvement of the equity incentive system and the continuous maturity of the market environment,equity incentives are favoured by more and more enterprises.However,the implementation time of equity incentives in my country is shorter than that of foreign countries,and many aspects are not mature enough.There are still many factors restricting the effect of equity incentives implemented by enterprises.At present,the food industry has competition incentives.Many food industries have successively launched equity incentive plans to improve the management efficiency of the enterprise and the overall development ability of the enterprise.Yankershop Food,the "first stock of leisure snacks" in China,was listed on the A-share market in 2017.To realize the long-term positive development of the company,to further mobilize the enthusiasm of employees,attract and stabilize the company’s internal talents and improve the company’s competitive position in the industry,Yankershop Food released an equity incentive plan in2019.After the release of the equity incentive plan,the share price of Yankershop Food increased significantly,and during the implementation of the equity incentive,the company’s performance continued to hit new highs,which is closely related to the company’s implementation of equity incentives.Therefore,this thesis takes Yankershop Food as the research object to extract relevant experience and enlightenment from the case of Yankershop Food’s implementation of equity incentives and provide a reference for other food industry companies.Specifically,based on the perspective of principal-agent theory,human capital theory,and management incentive theory,this thesis uses the literature research method,case analysis method,and event analysis method to analyze the motivation,elements,and implementation of the equity incentive plan implemented by Yankershop Food in 2019 to get an In-depth analysis of the effect.Selecting short-term and long-term stock price,financial indicators,and non-financial indicators before and after the implementation of equity incentives to analyze the implementation effects of Yankershop Food innovation performance,market response,and corporate governance,to analyze the implementation effect of Yankershop Food equity incentives.The analysis shows that the impact of Yankershop Food equity incentives on its performance is mainly reflected in the following three aspects: First,the profitability and development ability has been significantly improved,and the corporate performance has been significantly improved during the implementation of equity incentives;The second is the improvement of the R&D and innovation capability of the enterprise,which attracts more R&D talents and strengthens the ability of the R&D team of the enterprise.The response was strong,and the stock price continued to climb after the implementation of the equity incentive plan.The case analysis of Yankershop Food shows that the implementation of equity incentives has a positive impact on Yankershop Food which is very beneficial in reducing agency costs,improving corporate governance,improving the overall quality of employees,and enhancing core competition.Finally,after analyzing the implementation effect of Yankershop Food equity incentives,three inspirations are drawn: firstly,an equity incentive plan that matches the company’s performance should be designed;secondly,a reasonable equity incentive period and assessment objectives should be set;Internal and external environments that motivate effective implementation...