The Impact Of Equity Incentive On Performance Of High-tech Listed Enterprises

Since the mid-20 th century,with the decentralization of corporate equity and the increasing difficulty of enterprise management,enterprises have implemented equity incentive in order to maintain the sustainable development of enterprises.In 2006,“Measures for the administration of Equity Incentives for Listed enterprises(Trial)”(hereinafter referred to as the “Administrative Measures”),the number of listed enterprises that implement equity incentives in China began to grow steadily,and the equity incentive model gradually matured.At present,China is at the core stage of building an innovative country,and must rely on scientific and technological innovation to achieve a major leap.Therefore,as a major force of technology innovation,high-tech enterprises shoulder the important mission of promoting national development.Technology innovation innovation relies heavily on core talent resources and innovative technology resources.High-tech enterprises have the characteristics of high talent dependence,high innovation and high risk,which determines that they need a long-term incentive mechanism to attract and retain talents,stimulate employees' innovative ability and avoid short-sighted behavior of senior managers.Therefore,equity incentive as such a way of incentives for high-tech listed enterprises is of far-reaching significance.On the basis of literature review and theoretical combing of equity incentive,this thesis elaborates the actuality and characteristics of equity incentive in high-tech listed enterprises with a large number of statistical data as a supplement.On this basis,it selects Dahua Technology Co.,Ltd,a typical domestic high-tech enterprise,as a case for analysis.Through the analysis and elaboration of the background,motivation and implementation process of the two-stage equity incentive in Dahua Technology Co.,Ltd,the characteristics of the equity incentive are summarized.Then it analyses the changes before and after equity incentive from three aspects: short-term market reaction,financial performance and non-financial performance.In short-term market reaction,it uses Stata software to study the event of two-stage equity incentive in China.The results show that the announcement effect of two-stage equity incentive is positive and significant,which reflects that market recognition equity incentive can promote enterprise value-added.In terms of financial performance,the proxy cost is reduced,and the profitability,operation ability and development ability of enterprises are significantly improved.At the same time,the twostage equity incentive has a better promotion effect on enterprise performance through EVA method.As for non-financial performance,Dahua retains talents for enterprises,strengthens the intensity of R&D investment,and improves the R&D innovation ability of enterprises.According to the implementation experience of Dahua equity incentive,this thesis puts forward several suggestions for the implementation of equity incentive in hightech listed enterprises in China: enterprises need to innovate stock ownership incentivemodel,standardize non-financial index assessment mechanism,and set reasonable financial index assessment conditions;government departments should strengthen the promotion of stock ownership incentive,strengthen supervision and management,improve laws and regulations,and provide a sound environment for equity incentives.This thesis hopes to study the effect of the implementation of two-stage equity incentive in Dahua so as to play a reference role in the promotion of equity incentive in other high-tech listed enterprises,so that employees and enterprises can seek common interests and promote the rapid development of enterprises.