Research On Performance Of Equity Incentive Implementation Of Y Enterprise

In the 1950 s,equity incentive first emerged in the United States.With the continuous integration of various countries’ economies,equity incentive gradually rose in western countries and developed in a long term,becoming an effective way of corporate governance.It can solve the problems of information asymmetry,short-sighted behavior of operators,and also help enterprises retain core talents,and ultimately promote the sustainable development of enterprises.Chinese equity incentives formally began in 2006,to now our equity incentives have developed more and more mature,many enterprises have achieved better performance through the method of equity incentives,but many enterprises due to lack of experience,the formulation of equity incentive plan is not suitable for this enterprise,resulting in enterprise equity incentives do not get the expected effect,So our equity incentive still needs further development.In this context,the paper studies the influence of equity incentive policies on corporate performance,and provides some reference for similar enterprises in the formulation of equity incentive plans.Based on the principal-agent theory,human capital theory and incentive theory,this paper uses comparative analysis method,event study method and other methods to analyze the changes in the performance of Y enterprise before and after five equity incentives.First of all,this paper introduces the general situation and main business proportion of Y enterprise,analyzes the motivation of Y enterprise to implement equity incentive,and introduces the enterprise’s equity incentive scheme.Secondly,this paper analyzes the market reaction and performance changes before and after the implementation of equity incentive plan,and uses the event analysis method to analyze the market reaction after the announcement of equity incentive.At the same time,in the aspect of financial performance,it makes a horizontal and vertical comparative analysis of the performance indicators such as the solvency and profitability of the enterprise,and analyzes the changes of the economic added value of the enterprise in the years after the implementation of the equity incentive policy.Since the object of equity incentive is mainly the core technical personnel of the enterprise,the non-financial performance is mainly analyzed in terms of the dimission rate of employees,the innovation performance of the enterprise and the change of the proportion of high-quality talents.Finally,through the research,it is found that Y enterprise’s equity incentive has different effects on performance: in terms of market response,Y enterprise’s equity incentive plan of the first phase has a good market response.In terms of the impact on financial performance,Y enterprise’s equity incentive plan in the first and fourth phases has a good effect.In terms of non-financial performance,after the implementation of equity incentive,the number of highly educated personnel and their proportion in Y enterprise keeps increasing,and so does the innovation output.In general,the equity incentive of Y enterprise has a positive effect on Y enterprise,but there are still deficiencies such as incomplete assessment standards for the performance of the enterprise level and less incentives for new employees.By analyzing the equity incentive scheme of Y enterprise,this paper puts forward corresponding suggestions.First of all,in terms of assessment indicators,the selected assessment indicators at the enterprise level should be optimized.For example,the number of patents can be added to the performance assessment indicators to enhance the pertinency of incentives,so as to help enterprises enhance their innovative research and development ability.At the same time,indicators other than net profit growth rate and operating income growth rate can also be used,or several indicators can be combined to enhance different capabilities of enterprises at different stages.Secondly,enterprises should increase incentives for new employees to help enterprises better attract talents and maintain the stability of employees.It is expected that this paper can provide some reference for the formulation of equity incentive scheme in the future.