Research On The Implementation Effect Of Equity Incentive In Anke Bio

The separation of ownership and control leads to the advent of agency problem in modern enterprises,which also acts as an important issue during corporate governance.Most listed companies employ equity incentive as a means to solve this problem.However,scholars both at home and abroad hold opposite opinions on the effect of equity incentive.Advocates who support the implication of equity incentive scheme believe that this can promote same goal between shareholders and corporate executives,while opponents argue that equity incentive may encourage those executives to use it for personal profits at the expense of the company.Most current literature mainly focus on empirical research,with few study based on specific enterprises.This paper took 2 phrases of equity incentive from Anke Biotech as the research subject,and conducted a comprehensive research on its equity incentive implication effect via case analysis,literature analysis and comparative analysis,with the aim to explain the influence on enterprise performance from equity incentive.Based on the above case analysis,the influence on business performance from equity incentive in Anke Biotech can be summarized in the following aspects: for the incentivized targets,the implement of equity incentive can stabilize and attract company’s management and core talents to a certain extent,and optimizes the personnel structure.For market reaction,equity incentive has a certain positive announcement effect and increases the share price.In terms of financial performance,due to the lack of challenge in setting performance conditions of equity incentive in the first phase,the impact on financial performance is not obvious,while the setting of performance conditions of equity incentive in the second phase is reasonable,which greatly improves profitability,operating capacity and growth capacity.At last,this paper puts forward some suggestions for Anke Biology and related departments.For Anke Biotech,this paper suggests that it should establish a comprehensive assessment index and set up reasonable performance indicators.For the relevant departments,this paper suggests that they should improve the effectiveness of the capital market and the legal system related with equity incentive.