Case Study On The Financial Effect Caused By Equity Incentive Of Infinova

According to Modern Management Theory,equity incentive is a kind of effective long-term incentive system and a kind of motivational pattern which meets the long-term development of the modern enterprises.Equity incentive awards a certain amount of equity incentive subject matter to managers to realize the goal of convergence of interests among operators and owners.With the development of the equity incentive theory and the advancement of practice,whether the equity incentive can improve enterprise performance effectively has become the focus of the field of theory and practice.Is the equity incentive program design of electronic and communications equipment manufacturing industry reasonable in our country? What about the implementation effect of the equity incentive-program? Doing research on these problems has very important practical significance.In order to provide data basis and case support for the theoretical research and practical behavior of equity incentive,this paper evaluates the equity incentive program of listed companies in information echnology industry in our country in the following two perspectives on the basis of the related theory of equity incentive,the system background of our country and the characteristics of electronic and communications equipment manufacturing industry.The two angles are as follows: the first is evaluating rationality of the equity incentive program of listed companies in electronic and communications equipment manufacturing industry in our country in incentive pattern,incentive target and incentive effect perspective;the second is evaluating implementation effect of the equity incentive program of listed companies in electronic and communications equipment manufacturing industry in our country in financial perspective.In this paper,the performance of equity incentive of listed companies in China's electronic and communication equipment manufacturing industry is studied in the form of case analysis.The financial index method,the incident research method and the economic value added method are used to quantify the equity analysis from three different evaluation angles respectively Incentive performance,and selected the Infinova company case analysis,in order to analyze China's electronics and communications equipment manufacturing companies listed companies to try the effect of equity incentive.This paper makes a comprehensive evaluation of the design and implementation of equity incentive program of listed companies in electronic and communications equipment in our country,which explain the effect of equity incentive on the performance of listed companies in electronic and communications equipment in our country and the present situation of equity incentive implementation.Through empirical analysis,the following conclusions: Equity incentives have short-term positive effects on electronics and communications equipment manufacturing companies.However,long-term analysis of the results show that equity incentive for electronic and communications equipment manufacturing industry's long-term incentive effect is not obvious,This shows that the electronics and communications equipment manufacturing company's equity incentive program still exists room for improvement.