Study On Equity Incentive Effect Of Domestic High-tech Industry

Equity incentive is a kind of incentive mechanism that implied by company to stimulate and retain core workers,it's an essential part of governance mechanism of company,it's an important issue in aboard,and discussion about it never ceased despite it has been developed for a while in our country.High technology industry is known as knowledge-intensive,high-competitive industry,and their workers are considered younger,having higher mobility and expectation on salary in a short term compared with other industry,so hi-tech industry always faced with both high demand and loss rate of elite.Since equity incentives is a good method of sharing long-term benefit and breaking interest-shortsightedness so it's extremely important to hi-technology industry.As we step in the big data era and the popularity of “intelligent” manufacturing,hi-tech industry faced with unprecedented opportunity they've have,hence the improvement of incentive mechanism is getting more and more essential.This paper started from the analysis of in-tech industry's incentive scheme,combined with theoretic research,real case study and financial analysis.According to the study of existing literature,theoretic study aimed to have a deep understanding of characteristics of hi-tech enterprises and matching incentive mechanism.Based on which,case study aimed to analyze the effect of Dahua company's incentive schemes systematically.After three dimensions of evaluating--the performance on stock market,the change of financial index,and the behavior of manage--and analyzing from design,motivation and influence factors of Dahua's incentive scheme,the conclusions is as follows:About the whole industry: 1)the expirations of incentive schemes of the industry are mostly 3-4 years,and the risk of discontinuity is relatively high;2)companies of the industry who implied the equity incentive perform worse than average level,butthe disparity is getting smaller;3)companies of the industry who carry out equity incentives also implied earning management,they intend to use upward earning management to reach the unlocking indexes,whereas those who didn't carry out equity incentives intend to use downward earning management to avoid tax-paying;About Dahua company:1)the first equity incentive scheme more inclined to share while the second more inclined to inspire,but the first scheme was given a better feedback by the stock market than the second one;2)during the implement of two equity incentive schemes,Dahua always accompanied with earning management,and the second incentive scheme suffered higher earning management,while its' target index is higher than the first one;3)combined with higher dividend payout rate,the welfare of Dahua's equity incentives were improved,and the incentive effect was better.By providing empirical evidences,policy recommendations for hi-tech industry,and analyzing methods for effect-evaluation of equity incentive,this paper is of referential and warning values for enterprises on making equity incentive schemes.