Research On Equity Incentive Scheme Of Weixing New Materials And Implementation Effect Based On Enterprise Life Cycle

As a kind of incentive system,equity incentive grants certain shares to business operators as rewards,so that the interests of business operators and shareholders can be combined and business operators can be guided to participate in the company’s business decisions through their status as shareholders and consider for the long-term development of the company.Today,with the continuous improvement of China’s equity incentive mechanism and legal system,the research of equity incentive is developing towards maturity and more and more enterprises are accepting and implementing equity incentive.In addition,enterprises will go through different life cycle stages and have different strategic goals in different life cycle stages.Studying the plan and implementation effect of equity incentive in combination with the strategic goals of companies in different life cycle will help enterprises to make more targeted equity incentive plan that suits their own development needs,so that the effect of equity incentive can reach the maximum utility and help enterprises to realize the It also helps enterprises achieve their strategic goals in different life cycles.Based on the above background,this paper takes Weixing Xinzai as an example,combines the strategic objectives under different life cycles of Weixing Xinzai,and studies the implementation effect of equity incentive programs under different life cycles.Firstly,this paper uses the literature research method to organize the domestic and international literature on equity incentives and corporate life cycle.Secondly,this paper uses quantitative division and qualitative division to classify the life cycle of Weixing New Material,and uses textual analysis to analyze the strategic objectives of Weixing New Material in its growth period and maturity.In addition,based on the full understanding of the three theories of principal-agent theory,human capital theory and enterprise life cycle theory,this paper analyzes the mechanism of the effect of equity incentive implementation under different life cycles by combining the strategic objectives of Weixing New Material in the growth period and maturity period.Finally,using the case study method,the paper analyzes the implementation effect of equity incentive programs in four aspects: market response,financial performance,innovation ability and governance ability.The market performance of Weixing New Material was also analyzed by using the event study method.This paper finds that companies should choose the equity incentive model that fits the life cycle with the characteristics of different life cycles,and make the equity incentive plan that matches the company’s strategy under the life cycle according to the strategic goals of different life cycles,to maximize the effectiveness of equity incentive.The equity incentives of Weixing New Material under different life cycles fit the strategic goals of the company,and the equity incentives in the growth period promote the rapid development of the company,while the equity incentives in the maturity period are conducive to the long-term sustainable development of the company.In terms of the implementation effect,the equity incentive programs of Weixing New Material have a positive impact on the company,and the implementation effect of equity incentive in the maturity period is better than that in the growth period.Finally,this paper proposes suggestions to improve the shortcomings of the equity incentive program of Weixing New Material,hoping to provide reference for Weixing New Material and the industry to formulate the equity incentive program with the strategic goal of life cycle.