The Impact Of Equity Incentives In The Appliance Industry On Corporate Performance

Equity incentive is an incentive method to solve the inconsistency between shareholders and operators in the enterprise.Through the grant of equity,the operator has the right to share the residual value of the enterprise,and encourages the operator to exert his own advantages while satisfying personal interests.Contribute to the future development of the company.As a leading industry in China,the home appliance industry has a strong market share and high profit income.However,with the saturation of market share,the competition among home appliance companies is becoming more and more fierce,from the traditional price war to technology,management,In order to build a large professional management team,most enterprises choose to implement the equity incentive plan,and hope to encourage and retain more outstanding professional management talents through incentives,thereby improving the overall strength of the enterprise.,laying a good foundation for the long-term economic development of the company.However,the current research can not answer whether the equity incentives will have an impact on the home appliance industry and in which aspects.Therefore,this paper studies the incentive principle of equity incentives for this issue,and studies how equity incentives encourage operators to work hard to improve their development,and at the same time affect their management and investment capabilities.First of all,this paper mainly focuses on the production of small household electrical appliance enterprises,and sets up two sets of control groups according to whether or not to implement the equity incentive plan.From the two aspects of business management level and investment ability,the paper analyzes and analyzes the two listed companies in China's household electrical appliance industry.The effect of equity incentive implementation is evaluated.Then,using the case analysis method,taking Supor,the leading brand of the small household appliance industry,as an example,the Supor's equity incentive plan and effect are analyzed in detail to prove whether the equity incentive will affect the company's shareholder income,and whether the shareholder's income will increase.To promote the role,finally through the analysis and summary of the above content,found that China's home appliance industry listed companies in the process of implementing equity incentives may arise,and put forward rational recommendations on the issue.The first chapter of the article introduces the research background and research purposes of this paper.At the same time,it studies the relevant literatures in the academic circles and finds that equity incentives may have a negative or promoting effect on enterprises.So what is the equity incentives that will produce for the home appliance industry? The impact of the problem.The second chapter introduces the principal-agent relationship between the shareholders and operators of the enterprise.It is also because of this equity incentive that it can be launched.At the same time,through the analysis of the principle of equity incentives,the effect of equity incentives is mainly reflected in the management ability of enterprises.And shareholder income.The third and fourth chapters analyze the home appliance industry.At the same time,the small household electrical appliance enterprises are the mainstays.The financial analysis is carried out with reference to whether or not to implement the equity incentives as a reference.It is found that the equity incentives have positive effects on the management and investment capabilities of home appliance enterprises.To influence,while increasing shareholder returns.The fifth chapter takes Supor as the case company.According to the management and management ability,investment ability and shareholder income,it analyzes the financial indicators of Supor.It is concluded that the equity incentives have indeed promoted the development of Supor enterprises and improved the enterprises.The management ability and investment ability,and the conclusion of the shareholders' income.The sixth chapter is a summary of the above chapters,and provides reasonable suggestions for the problems arising after the implementation of the equity incentive plan.