Research On The Influence Of Equity Incentive On The Financial Performance Of Yunnan Baiyao

In the economic structure of our country,state-owned enterprises play a very important role,along with the rapid development of market economy,state-owned enterprises also meet such problems and challenges as low management efficiency,backward business sector,excessive government intervention and so on,mixed ownership reform is a good way to solve these problems.The mixed ownership reform of SOEs can support the further development of the modern enterprise system,support the scientific development of SOEs,improve the efficiency and quality of their development,and increase the vitality of the state-owned economy.In the process of mixed reform of state-owned enterprises,equity incentive and other incentive methods are also introduced to integrate personal interests with the overall interests of the company,to encourage individuals to take the initiative to realize the overall interests and long-term development of the enterprise.At present,the implementation of equity incentives and other methods to encourage the diversification of ownership structure,state-owned enterprises operating efficiency can be improved,improve enterprise performance,and achieve the goals of the company.In order to study the influence of equity incentive implementation of stateowned enterprises on corporate financial performance under the background of mixed ownership reform,this paper chooses Yunnan Baiyao,a representative enterprise of mixed ownership reform in Yunnan Province,as the case study object,and expounds the mixed ownership reform process and equity incentive plan of Yunnan Baiyao through the case.Then,the financial index analysis,Dupont analysis,efficacy coefficient method and economic added value method were used respectively to compare and analyze the financial performance of Yunnan Baiyao and Contrast Company in the corresponding period.Based on the research,this paper draws a conclusion:(1)The mixed reform promotes the integration and complementarity of the respective superior resources of state-owned capital and private capital.The business integration after the cooperation between Yunnan Baiyao and Xinhuadu can not only enable Yunnan Baiyao to better play its brand and product advantages,but also further expand its market share and influence in the whole country.For Xinhuadu,it can increase its brand effect and expand its business.(2)Equity incentive has a positive impact on the financial performance of Yunnan Baiyao.After the implementation of equity incentive,the company’s debt paying ability,operating ability and growth ability have been improved.The EVA index exceeds the average level of the comparison company and the industry,indicating that equity incentive has a positive impact on the company.(3)The equity incentive plan needs to be further improved.In the process of the design and implementation of the equity incentive scheme,Yunnan Baiyao has some problems,such as too concentrated incentive scope,unitary conditions for the exercise of the incentive scheme and fuzzy incentive objects.(4)It is necessary to continue to promote mixed ownership enterprises to carry out equity incentives.After the implementation of equity incentive,the financial performance of Yunnan Baiyao has improved to a certain extent,which proves that Chinese state-owned enterprises can learn from the experience of Yunnan Baiyao,and according to their own situation,combine the mixed reform and equity incentive organically,and formulate a scientific complete equity incentive plan.Finally,this paper also puts forward some suggestions for some problems existing in equity incentive cases:(1)Appropriately expand the scope of equity incentive.When formulating equity incentive plans,enterprises should cover as many people as possible,appropriately reduce the awarding ratio of senior executives,expand the awarding scope,and avoid the negative impact caused by over-reliance on managers’ ability or neglect of management methods.(2)Enterprises should build a multi-factor evaluation index system,and should use a combination of multiple performance evaluation indicators to prevent the evaluation index from being too single and simple.When setting the exercise conditions,the development situation and characteristics of the industry can be considered,and some non-financial indicators can be appropriately introduced.(3)In the implementation process of equity incentive,the management of idle funds should be strengthened,and the evaluation index of company cash flow can be added to the incentive plan to ensure the security of funds.To establish a correct investment concept,clearly identify possible investment risks,to ensure the use of capital safety and maximize the benefits.(4)The implementation of equity incentive should improve the information disclosure system.Make clear the object of equity incentive to avoid the situation of fuzzy incentive object.A perfect withdrawal mechanism shall be formulated,and conditions for withdrawal shall be clearly specified to ensure the steady implementation of the equity incentive plan.The company shall constantly evaluate and adjust the equity incentive plan.