The Influence Of Equity Incentive Scheme On The Financial Performance Of High-Tech Enterprises

Equity incentives arise in the context of the separation of ownership and operation.It is because of this background,equity incentive has been developing rapidly since produced.Equity incentives connect the interests of management and core employees with those of the company’s shareholders by granting them stock,making them a community of interest.When making decisions,the management can maximize the company’s interests even out of their own interests,thus reducing agency costs.At the same time,it can also achieve the purpose of reducing employee mobility and attracting talents.Since the Ministry of Finance issued equity incentive management measures in 2005,relevant laws and policies have been constantly improved,providing a healthy institutional environment for equity incentive of listed companies in China.China’s equity incentives have also entered a phase of rapid development.Due to the unique high growth and high value,the demand for skilled personnel in high-tech enterprises is more urgent.Therefore,high-tech enterprises are the main subjects among the listed companies implementing equity incentives.As a typical high-tech enterprise,CSCT,after its listing in 2015,has implemented three equity incentive plans respectively.The three equity incentive plans were implemented at different times and with different incentive models and effects.This paper analyzes the design of the three incentive plans,and analyzes the horizontal and vertical performance of the enterprise through financial indicators,economic value added and non-financial indicators.After analysis,we found that(1)the analysis of the financial indicators revealed that,due to the single setting of exercise indicators,the changes in the aspects involved in the indicators were obvious,and the changes in other aspects were not obvious;(2)based on EVA selected companies that implemented equity incentives for analysis,we believe that equity incentives can improve corporate value creation,and the first incentive has the most obvious effect;(3)on non-financial indicators,innovation performance and employee changes were selected for analysis,and it was found that the first equity incentive had the most obvious effect on the attractiveness of talents and solidifying management.Finally,the program design and incentive effect are combined to summarize the desirable and deficient aspects of the company’s program design and put forward relevant suggestions for improvement.It is expected to be a reference for the implementation of equity incentives for enterprises in the same industry.