Research On The Implementation Effect Of Equity Incentive In Science And Technology Innovation Board Enterprises

As an effective mechanism to solve the company’s "principal-agent" problem,equity incentive can make managers pay more attention to the sustainable development of enterprises and reduce short-sighted behavior.In recent years,with the continuous introduction of relevant policies,the implementation of equity incentive has become increasingly normalized in China.However,in the process of implementing equity incentives,enterprises on the main board,the small and medium-sized board and the growth enterprise board have gradually encountered problems such as the high grant price,the enthusiasm of incentive objects,and the single exercise conditions.As an important part of China’s capital market,the innovative provisions of its equity incentive system seem to provide a useful way to solve the above problems.This paper selects Junshi Biological,an enterprise that has used the innovative provisions to design the incentive plan,to carry out a case study.Through summarizing the reasons for its implementation of equity incentive,the implementation effect of the incentive plan and the existing problems,it tries to form a certain reference for the equity incentive of other enterprises in the same industry of the Science and Technology Innovation Board.First of all,this paper briefly introduces the research background and significance,and expounds the relevant theories of equity incentive.Secondly,it analyzes the relevant policies and implementation status of the equity incentive of the science and technology innovation board enterprises,introduces the internal and external environment of the implementation of the equity incentive of Junshi Biological,and summarizes the implementation motivation of the equity incentive on this basis.Then,this paper describes the content of Junshi Biotech’s equity incentive plan in more detail,and analyzes the setting of the contract elements in the plan,with the purpose of laying a foundation for the analysis of its implementation effect below.Finally,from the perspective of financial performance,non-financial performance and market response,the implementation effect of its incentive plan is evaluated after horizontal and vertical comparative analysis.Through case analysis of the application of Junshi Biologic’s equity incentive,this paper believes that the implementation effect of the equity incentive with innovative policies in the second phase is better than the implementation effect of the first phase of stock options,but the overall implementation effect of Junshi Biologic’s equity incentive is not ideal.Although the implementation of equity incentive has reduced the agency cost of Junshi Biologic and improved the company’s human capital situation,However,in terms of the four capabilities of financial analysis and R&D innovation,the implementation effect of equity incentive still needs to be improved.This paper believes that the reason why the incentive effect is not as good as expected is that the setting of some incentive plan elements such as performance evaluation indicators has the characteristics of "welfare type",the incentive period is short,and the lack of effective supervision.In this regard,this paper puts forward three optimization suggestions: improve the performance evaluation conditions,appropriately extend the validity period,and establish an effective supervision mechanism.