The Performance Analysis Of Hisoar Pharmaceutical's Equity Incentive Scheme

With the continuous progress and development of science and technology,the scale of modern enterprises is becoming larger and larger,and they are also facing more fierce competition.Besides,their own capital is their indispensable competitive advantage,and human capital is the most important.In order to develop continuously in the market,enterprises need to consolidate and enhance their competitive advantage,so stabilizing core talents has become an important strategy for modern enterprises.In the early 1990s,China introduced equity incentive.Since Vanke became the first company in China to implement the equity incentive plan,many quoted companies in China have chosen to use equity incentive to stabilize the core talents.Equity incentive is one of the most common ways to encourage employees.As a long-term incentive mechanism,the core employees of the enterprise are awarded the stock or other subject matter of the company,which makes the employees and the company become the community of interests,which is conducive to the long-term and stable development of the enterprise.This method can not only satisfy the staff,but also stimulate the enthusiasm of the staff.At the same time,it is the most effective way to solve the problem of principal-agent and information asymmetry,not only can make the management layer avoid short-sighted behavior,but also can make the managers pay more attention to the long-term development goal of the enterprise.This paper selects Hisoar Pharmaceutical as the research object to analyze the change and effect of its equity incentive.In order to evaluate the effect of equity incentive implementation in Hisoar Pharmaceutical,this paper constructs an evaluation system of equity incentive implementation effect from five aspects:financial index,management short-term behavior,agency cost,industrial structure and employee change,to analyze the changes of these factors before and after the implementation of the equity incentive plan.This article is divided into five sections.The first chapter is the introduction,mainly introduces the research background and significance,combs the domestic and foreign related literature,at the same time introduces the research idea,the method,the innovation point and the limitation;the second chapter mainly generalizes the related theory of the equity incentive;the third chapter is the company brief introduction,the implementation process and the motivation;the fourth chapter is the analysis based on financial index and the non-financial index;the last chapter is the conclusion and enlightenment.