Equity Incentive Effect Of The Software Industry

In recent years,more and more companies begin to implement equity incentive plans,equity incentive can retain the company's core talent,and improve the company's core competitiveness,but not all equity incentives can achieve good results,there are many cases of equity incentive failure in practice.There are 51.85%of the enterprises to implement equity incentive plans in software industry,and it is the largest number in all industries,because of its high intelligence,high growth and high demand for talent.However,staff turnover in the software industry remains high,according to the statistics,the average employee working time in this industry was less than 2 years in 2016,this inevitably cast doubt on the software industry equity incentive effect,so the software industry equity incentive effect become the focus of scholars.In the software industry,the Hande information company has continued to launch six equity incentive plans,becoming the company with the largest number of stock incentive plans in the software industry,the effect of its equity incentive is particularly noticeable.Based on this background,this article combines the industry with individual cases to analyze the overall situation of the software industry equity incentive,and study the software industry's overall equity incentive performance through the descriptive statistics and mean difference T test.This paper finds that although many companies in the software industiy introduced equity incentive plans,the number of equity incentive plan launch by a single company is generally small,and only Hande information company introduced six equity incentive plans.In addition,the equity incentive does not get good results in software industry,there is a problem that long-term performance is weaker than short-term performance.Under the above circumstances,the Hande information company still continues to launch six equity incentive plans.Therefore,this article studies the effect of the equity incentive of Hande information company.First of all,using the method of event research,financial index,horizontal comparison and vertical comparison,and found that its equity incentive not only achieves beltter financial results,avoides the issue of long-term performance weaker than short-term performance,but also get better non-financial results.And then analysis the equity incentive plan of Hande information company,and found that its continuous introduction of equity incentive plan is the biggest advantage,which playes an important role in obtaining better equity incentive effect.In addition,its incentive has a wide range of incentive objects,focus on long-term development,but its targets are too concentrated,the performance evaluation indicators are single,and the performance evaluation conditions are relatively loose.Hande information company continues to launch six equity incentive plans,continuously reinforcing employees' efforts,and achieves better financial and non-financial resulls.The research on equity incentive effect of the Hande information company in this paper not only enriches the application of positive reinforcement theory in the effect of equity incentive,but also provides guidance to other companies that implement equity incentive in the software industry.Improving the phenomenon that long-term performance of equity incentive in software industry is weaker than short-term.At the same time,it has a reference value to companies in other industry that implement less equity incentive and have the problem that long-term performance weaker than short-term performance.