Study On The Implementation Effect Of Equity Incentive Plan Of Hande Information

With the separation of company ownership and management rights,the issue of principal-agent has begun to emerge,and equity incentives can closely link personal interests with the interests of the company,helping to alleviate the contradiction of principal-agent.Through the implementation of equity incentives,enterprises can mobilize the enthusiasm of employees and stimulate their potential,thereby promoting the improvement of corporate value.China's GEM market has concentrated on growth-oriented and innovative high-tech SMEs.Such enterprises need more diligent work of talents to enhance their competitiveness,so equity incentives are sought after by many GEM companies.However,China's GEM listed companies still face many problems in implementing equity incentives.How to give full play to the role of equity incentives needs further exploration.This paper firstly sorts out relevant literatures at home and abroad,mainly involving four aspects: the motivation of equity incentives,the specific contract elements of equity incentives,the influencing factors of equity incentives,and the relationship between equity incentives and corporate performance.Then it expounds the related concepts and theoretical basis of equity incentives and analyzes the current situation of China's GEM companies implementing equity incentives.Then,it analyzes the effects of implementing equity incentives,including financial performance,personnel turnover,R&D innovation capabilities and market response through financial indicators and other methods,and explores the influencing factors of effect so as to fully explore the impact of equity incentives on enterprises.It conducts a comprehensive analysis from a macro perspective and a micro perspective.Finally,the paper puts forward suggestions on the more effective implementation of equity incentives for China's GEM listed companies from the perspectives of external market and legal environment,internal guarantee mechanism and equity incentive plan design.Through analysis,it can be found that the implementation of equity incentives by Hande Information has produced positive financial and non-financial effects.Its profitability and operational capability have been enhanced and its solvency and development capability is superior to its competitor Dingjie Software.At the same time,the turnover rate of incentive targets is lower than the industry average,and the proportion of highly educated employees is increasing year by year.The intensity is also increasing and efficiently translated into research and development output.It can be seen that the implementation of equity incentives has improved the overall value of Hande Information.The continuous launch of the equity incentive plan is its most prominent feature,and it is also the key to achieving good incentive effects.It will help to form a corporate incentive culture and promote the sustainable development of the company.In addition,its incentive objects cover a wide range,not only for executives,but also for their own actual situation,focusing on the incentives for core technical personnel.But there are also deficiencies.The performance evaluation indicators are unreasonable and incentive validity period is short.This paper selects Hande Information as the research object,and analyzes and summarizes the effect of its equity incentives.This paper hopes to further enrich the theory of equity incentives,and also hopes to provide valuable suggestions and reference about the design and implementation of equity incentives for other companies in the GEM.