The Research On The Effect Of Equity Incentives In Listed Companies In Pharmaceutical Manufacturing Industry

With the high division of labor in modern production methods and the intensification of market competition,the need for talents has become more and more important.The competition among industry giants is often a battle for talents.Equity incentives have a specific role in motivating employees and reducing agency costs.Most companies in the world have accepted and recognized the role of attracting and retaining outstanding talents.The equity incentive mechanism originated in the United States in the 1950 s,and then it was introduced by other developed countries.After decades of theoretical research and practical exploration by foreign scholars,the exploration of equity incentive mechanism by foreign scholars has been relatively clear..However,due to the late reform of the share-trading reform of listed companies in China,the large-scale introduction of equity incentive mechanism by listed companies in China is relatively late.At the same time,in the academic world,the implementation effect of equity incentives has always been controversial,and targeted research and exploration are still needed.China's capital market is still in a weak and effective stage,and the short-term market reaction of the capital market to the equity incentive plan is not yet highly rational.Therefore,the actual application effect of equity incentives in listed companies in China needs further exploration.With the development of China's economic strength and the advancement of science and technology in recent years,the average life expectancy of our citizens has been continuously extended,and the people have paid more attention to their own health.China's pharmaceutical manufacturing industry is closely related to the health of the national health.In recent years,the domestic medical insurance policy has gradually been adjusted,and the price of medicines has been regulated and restricted.At the same time,the pharmaceutical manufacturing industry is encouraged to invest in the long-term.China's pharmaceutical manufacturing industry has achieved leap-forward development by virtue of the huge domestic demand in the domestic pharmaceutical market and the strong anti-risk ability unique to non-cyclical industries,and the competition among companies in the industry has become increasingly fierce.In this environment,there are more and more listed companies in the pharmaceutical manufacturing industry that have started equity incentives in China.Then,what is the impact of equity incentives on the corporate performance of listed companies in the pharmaceutical manufacturing industry? This paper firstly draws on relevant theories and previous research results,and theoretically defines equity incentives and corporate performance.Secondly,it has sorted out the background of equity incentives for listed companies in the pharmaceutical manufacturing industry.After that,the contents,distribution methods and motivations of Tonghuadongbao's equity incentive plan were introduced and analyzed.Finally,a comprehensive and objective evaluation of Tonghuadongbao's corporate performance is made from the two dimensions of corporate financial performance indicators and non-financial performance indicators.The results of the study finally show that the implementation of the equity incentive plan in this period has led to a significant improvement in the corporate performance of Tonghuadongbao,providing a relatively high-quality learning model for listed companies in the pharmaceutical industry that will implement the equity incentive plan in the future.For pharmaceutical manufacturing listed companies,due to the particularity of the pharmaceutical manufacturing industry,the equity incentive plan has a certain role in retaining key talents,encouraging R&D innovation,and gaining industry competitiveness.However,enterprises should not blindly use the equity incentive mechanism.They should select appropriate incentive models for their own situations and development needs,set scientific unlocking conditions,and scientifically and rationally expand the scope of equity incentive targets to achieve the incentive effect of equity incentive mechanisms.The regulatory authorities should also strive to establish a scientific and efficient market evaluation mechanism,improve the relevant laws and regulations on equity incentives,and promote the more relevant information disclosure system for equity incentives.