A Case Study On Equity Incentive Of New Energy Battery Enterprises

As a long-term incentive mechanism,equity incentive is widely considered to be able to retain talents,improve governance structure,reduce corporate agency costs and enhance corporate performance and value for enterprises.The new energy battery industry,as a technology-intensive and high-tech industry that has been developing rapidly in recent years,has a strong desire to improve company performance and capture market share,and a good corporate governance structure and excellent core technical staff are particularly important to the company.This paper firstly composes and summarizes the theories related to equity incentive and the existing research literature at home and abroad,then it elaborates on the current situation of the implementation of equity incentive in the new energy battery industry,the motivation of the three equity incentives of the case company YW Lithium Energy and the design of the equity incentive plan scheme,and finally analyzes the effect of YW Lithium Energy’s equity incentive plan after its implementation by means of event study method and comparative analysis method.The main conclusions of this paper are:(1)the implementation of equity incentives can help improve the performance of new energy battery enterprises and enhance market competitiveness;(2)in the stock market,equity incentives can bring long-term excess returns,but short-term market returns are not obvious;the implementation of equity incentives in the period of low and downward stock prices can play a role in stabilizing stock prices;(3)successive failure of exercise will bring negative effects to enterprises,and enterprises It is necessary to make dynamic adjustments to the incentive plan.At the same time,this paper also obtains some inspirations from the equity incentive plan and implementation effect of Yiwei Lithium Energy:(1)The choice of equity incentive mode should be combined with the characteristics of the industry and the company;(2)The fluctuation of market demand should be taken into account in setting assessment indicators,rather than blindly optimistic;(3)Relevant departments should continue to improve and refine supporting policies for equity incentives to help the development of the capital market.This paper hopes to provide some ideas for the development of the case enterprise through the study of the equity incentive of Yiwei Lithium Energy,and also provide some reference directions for the implementation of equity incentive plans for similar enterprises in the same industry and even other industries.