Research On The Impact Of Y Company's Equity Incentive On Corporate Performance

Stock ownership incentive originated in the United States.In the 1970s,the US government introduced a number of related laws and regulations for stock ownership incentive.Afterwards,the stock ownership incentive began to be implemented in many developed countries.In the 1990s,the stock ownership incentive has gradually become prevalent in China.Because information technology enterprises are characterized by high risk and high yield,the stock ownership incentive is most implemented in the information technology industry presently.However,different incentive modes shall be selected for different enterprises and enterprises at different growth stages.The inappropriate selection may lead to counterproductive results.Therefore,the listed companies in the information technology industry in China should formulate the performance appraisal conditions that are suitable for their long-term development according to the specific conditions,so that the stock ownership incentive can produce better incentive effects.Y Company is in the information technology industry and implemented four stock ownership incentive plans.The implementation stages of these four stock ownership incentive plans basically cover the entire stage of stock ownership incentive practice in China since the issuance of the "Measures for the Administration of Stock Ownership Incentives of Listed Companies".This paper chooses Y company's four stock ownership incentive plans as the research object.The author firstly sorts out the domestic and foreign literature from the design of stock ownership incentive,the motivation and incentive effect of stock ownership incentive these two aspects.Secondly,it introduces the related concepts,theories,company performance research and the methods of correlation analysis between equity incentives and company performance;After a brief introduce on the contents and implementation results of the stock ownership incentive plan of Y company,the financial index method and efficacy coefficient method are used to analyze the financial performance of Y company before and after the implementation of the stock ownership incentive plan,and meanwhile the two non-financial effects of R&D investment and personnel flow are also simply analyzed.Finally,it makes evaluation on the plan design of stock ownership incentive and puts forward relevant recommendations.Through research,it is found that in terms of the incentive effect stock ownership incentive plan on the improvement of performance is obvious.In terms of the design of contract elements,the choice of incentive objects and modes,the source of incentives,the validity period and the total quantity of grant are relatively reasonable,but the quantity allocation,the exercise price and the performance evaluation indicators have to be improved.