Research On The Influence Of Equity Incentive On The Performance Of Sanhua Intelligent Control Company

In the 20 th CPC National Congress,General Secretary Xi Jinping pointed out that science and technology are the primary productive forces,talents are the primary resources,and innovation is the primary driving force.The 14 th Five-Year Plan also emphasizes the importance of technological innovation to national development,which cannot be achieved without the support of talents.Public companies usually adopt equity incentives to stimulate employees’ innovation and enhance the company’s technological innovation capabilities,while also helping to strengthen the country’s strategic technological power.Implementing equity incentive plans can make managers work more diligently,make decisions that are more favorable to the company’s development when faced with choices,and thus reduce agency costs;attract,stabilize,and motivate excellent management talents and core technical backbone,and then scientifically adjust the employee structure;improve the company’s industry competitiveness,improve its performance,etc.Therefore,this article has certain theoretical and practical significance in studying the impact of Sanhua Intelligent Control’s implementation of equity incentives on performance.This article first introduces the research background and significance,literature review,and related theories through literature research.Secondly,the case study method is used to introduce the profile of Sanhua Intelligent Control Company,the motives for implementing equity incentives,and review and analyze the three incentive plans launched.Then,the factor analysis method is used to study the impact of equity incentives on financial performance before and after implementation.The market reaction is analyzed by studying the fluctuations of stock price and market value before and after implementation,and the impact on innovation performance is analyzed by studying the changes in the number of patents and R&D investment before and after implementation.The impact on human resources structure is analyzed by studying the changes in staff turnover rate and employee professional and educational structure before and after implementation.Finally,through the above analysis,it is concluded that the implementation of equity incentives has generated good short-term market response,mostly positive long-term effects on company performance,and is conducive to improving the company’s innovation capability and control over technology talents.However,due to problems such as unclear selection criteria for incentive objects,insufficient incentive intensity,incomplete assessment indicators,and short effective and waiting periods in the equity incentive plan implemented by the company,corresponding countermeasures are proposed,including clarifying the selection criteria for incentive objects,increasing the incentive intensity and optimizing the assessment system,and setting a reasonable equity incentive period.The innovation of this paper lies in the unique research object,Sanhua Intelligent Control,which belongs to the general equipment manufacturing industry and mainly engages in the business of heat management,refrigeration and air conditioning electrical components,as well as automobile-related components.This type of company has not been deeply studied regarding the impact of implementing equity incentives on various types of performance.Furthermore,the increasing global demand for energy-saving and environmentally-friendly air conditioning,government policies for energy conservation and emission reduction,the rapid rise of new energy vehicles,and the application of artificial intelligence and autonomous driving in the automotive industry all demonstrate that this case study conforms to the current trend.By using vertical and horizontal comparative analysis,this paper evaluates the changes in four aspects of performance before and after the implementation of the incentive plan.In terms of financial performance,it selects indicators from 111 peer companies in the same industry for horizontal comparison,and comprehensively evaluates the performance of Sanhua Intelligent Control.This paper adopts a combined approach of case study and empirical analysis,which not only provides a specific analysis of this particular company,but also uses a large sample size for objective analysis,which can contribute to the understanding of the impact of equity incentives on performance in related fields.