Research On Equity Incentive Of Tiger Pharmaceutical Based On Enterprise Innovation

At this stage,innovation,as an important means to enhance national comprehensive competitiveness and promote stable economic development,has become particularly important in economic and social development.For enterprises,innovation is a necessary condition for their survival and development,among which R & D innovation is the most critical link.In the development of modern joint-stock enterprises,due to the existence of principal-agent problem,enterprise managers only pay attention to short-term interests and choose to avoid risks,ignoring the long-term development of enterprises,which leads to the problems of less investment and low enthusiasm in R &D and innovation.Therefore,enterprises need to take effective measures to make the interests of operators and owners tend to be consistent,and improve the competitiveness and cohesion of enterprises,so as to promote the level of R & D and innovation of enterprises.As a long-term incentive method,equity incentive can better motivate enterprise managers and make their interests consistent with enterprise owners,so as to solve the problems caused by principal-agent.Since China implemented the split share structure reform in 2005,more and more listed companies began to implement equity incentive policies,and the relevant systems are gradually developed and improved to reflect the maximum effectiveness.According to the statistics of China Securities Regulatory Commission,in 2020,a total of 440 A-share listed companies in China announced their equity incentive plans,and the equity incentive modes are becoming more and more diversified.The outbreak of COVID-19 in 2020 made people more and more aware of the importance of the pharmaceutical industry.However,due to the increasing competition among pharmaceutical enterprises,they chose to entrust the research and development of non critical drugs to cro enterprises,a professional service organization,in order to reduce R & D costs and improve production efficiency.Therefore,this paper studies the equity incentive scheme of tiger medicine,the first cro enterprise listed on the gem in China,and discusses the relationship between equity incentive and enterprise R & D innovation.Based on the above background,based on the principal-agent theory,human capital theory,innovation theory and incentive theory,this paper introduces the current situation of China’s equity incentive system from three aspects: the statistics of equity incentive mode,the statistics of the number of equity incentives and the distribution of industries by using four methods: Literature research method,case analysis method,comparative analysis method and event research method;Secondly,it makes a case study on the equity incentive of tiger medicine,including the analysis of its four equity incentive plans,implementation motivation and effect;Then,through the implementation of the equity incentive scheme,this paper analyzes the impact on its enterprise R & D innovation,and makes a comparative analysis with the same industry,so as to summarize the path of the impact of equity incentive on R & D innovation and the market response brought by the implementation of equity incentive;Finally,according to the above research,the conclusion of the effectiveness of equity incentive on Enterprise R & D innovation is drawn,that is,the implementation of equity incentive plan can effectively improve the level of enterprise R & D innovation,but its duration is short and lagging.According to the conclusion,this paper points out the problems of equity incentive and puts forward relevant suggestions to provide reference for other listed companies.