Research On The Implementation Effect Of Equity Incentive In High-tech Enterprises

At present,China has launched a large number of policies to support the innovative development of high-tech enterprises,aiming to play a driving role in the efficient and highquality development of the entire industry.High human capital,high investment,and high innovation are the three important characteristics of high-tech enterprises.Especially with high human capital,the core competitiveness of high-tech enterprises relies on the construction of high-quality talent teams and the value of human capital.Therefore,in order to reduce issues such as talent loss and information asymmetry,enterprises usually adopt equity incentive systems to improve the constraint and incentive level of talents,in order to mobilize employees’ work enthusiasm,thereby improving the performance and core competitiveness of the enterprise.According to statistics,as of the end of 2021,61% of hightech enterprises listed on A-shares in China have chosen real equity incentive plans.However,further exploration and research are needed to determine whether the implementation of equity incentives can effectively achieve talent constraints and incentive effects.This article first summarizes and organizes domestic and foreign literature on the impact of equity incentive plan elements design on the performance of high-tech enterprises and the relationship between equity incentives,R&D investment,and innovation performance based on principal-agent theory,human capital theory,incentive theory,and technological innovation theory;Secondly,the overall situation and equity incentive characteristics of listed high-tech enterprises in China from 2009 to 2021 were analyzed,and based on this,the characteristics of their equity incentive plans and the mechanism of the impact of plan design elements on enterprise performance were studied and analyzed;Once again,this article takes the equity incentive case of Dongfang Yuhong Company as the core content of the article.It organizes and analyzes the main content and implementation process of the three equity incentives conducted by Dongfang Yuhong Company as of the time of writing,and comprehensively evaluates its implementation effects from four aspects: shortterm market response,financial performance,talent retention and absorption effects,and innovation ability.After in-depth exploration and analysis,it was found that after the implementation of the equity incentive plan by Dongfang Yuhong Company,investors are generally optimistic about the market performance of the equity incentive plan announced by Dongfang Yuhong.In terms of financial performance,Dongfang Yuhong’s abilities in profitability,debt repayment,and growth have significantly improved after the implementation of the equity incentive plan.There is also a significant positive performance in talent retention,attraction,and innovation capabilities.In addition,it was found that Dongfang Yuhong effectively ensured that its equity incentives achieved good results by strictly dividing incentive targets,reasonably setting performance conditions based on its own development situation,and scientifically establishing management systems,At the same time,Dongfang Yuhong can take measures such as further expanding the scope of equity incentive objects,appropriately increasing incentive intensity,and expanding and improving performance evaluation indicators to improve its own equity incentive plan to achieve better incentive effects.Finally,by combining the current situation of high-tech enterprises in China and the implementation characteristics of equity incentives,as well as the experience of Dongfang Yuhong Company’s equity incentive plans,this article proposes implementation suggestions for equity incentives in high-tech enterprises,hoping to have certain reference value for high-tech enterprises...