The Impact Of Equity Incentive Plan On Corporate Financial Performance

As an internal incentive method,equity incentives can help companies attract and retain talents and enhance employees’ motivation and recognition,which is a standard management tool in existing companies.As of 2021,more than 1200 companies in Shanghai and Shenzhen have disclosed their stock option incentive plans,and the number of companies implementing equity incentive plans is increasing day by day.This thesis selects the representative Yonghui Supermarket from the listed traditional retail companies in China.It aims to study the influence relationship between the equity incentive plan launched by Yonghui Supermarket in2017 and the company’s financial performance.First of all,this thesis sorts out the relevant literature on the implementation motivation,implementation method,implementation effect and financial performance research method of equity incentive;In this thesis,the event study method is used to analyze the short-term impact of financial performance.At the same time,the article starts with profitability,solvency,operating ability,development ability and EVA value.It analyzes the impact of implementing equity incentives on corporate financial performance.Finally,through the research to find out the existing problems,put forward the corresponding improvement measures,and draw the conclusion of this thesis.The research results show that the implementation of the equity incentive program has a particular impact on the company’s financial performance.Through the analysis of the trends of specific financial indicators,it can be found that the overall financial performance of Yonghui Supermarket has been improved to different degrees after the implementation of the equity incentive,but there are still shortcomings.Because of these shortcomings,this thesis puts forward relevant suggestions that have specific research significance for implementing equity incentives in Yonghui Supermarket.Hopefully,it can provide a reference for Yonghui Supermarket and other companies in the industry.