Research On The Impact Of TBEA’s Equity Incentive For R&D Innovation

With the increasing competition of global enterprises, improving the core competitiveness of enterprises becomes the primary objective. The one of the major factors of determining the core competitiveness of enterprises and sustainable development is enterprise’s internal R&D capability. R&D investment ability determines the level of enterprises facing the difficult. But the reality of the implementation of equity incentive companies continue to emerge executives to resign cash,corrupting a huge incentive funds result of a continuous loss of companies and other negative phenomena,which cause people to doubt the validity of equity incentive.Therefore, developing a set of reasonable incentive mechanism to promote enterprise R&D investment and high output becomes very urgent,so how to according to their own characteristics and develop closer actual situation of the enterprise’s equity incentive,which have pivotal role.This paper takes Xinjiang TBEA’s stock incentive for the specific content satarts to the case study. First, explaining the research background and significance of this thesis and summarizing the domestic and foreign researchers for study the degree of equity incentive;secondly, introducing the targe enterprise,includings background,intention,main content of the program of the target enterprise; thirdly, Respectively using Event study method, Financial index analysis method during the proce of Equity incentive.There are some Substitution variable, such as the situation of Patent application, R&D technical personnel accounting,R&D expenditure, R&D intensity, Weighted average rate of return on net assets and contrast to the change of research and development between the implementation of equity incentive in the company.The conclusion: equity incentive is a double-edged sword, coordinating management and shareholder agency conflict grasps the incentive degreeat the same time, formulating reasonable performance evaluation standard, concerning the core technical personnel and reducing R&D projects of consuming corporate profits, which concering from the three aspects can improve the incentive effect. And putting forward the following suggestions: First,establishing and improving the assessment mechanism and promote the enterprise sustainable development; Sceond, culturing character of senior management persons become the managers of the enterprise to guide enterprises to make strategic decisions;Last, formulating sound policies and regulations.