A Case Study Of The Equity Incentive Of Dongxu Optoelectronics Co.,Ltd.

As an important means to solve the agency problem,equity incentives are valued by scholars.However,domestic and foreign scholars often use empirical research methods to explore the relationship between equity incentives and corporate performance.Case studies focus on the design and effects of equity incentive schemes.strategy.As a leading enterprise in China’s glass substrate industry,Dongxu Optoelectronics has implemented three different types of equity incentive plans,and carried out a strategic transformation during the implementation of the plan.As a research object,Dongxu Optoelectronics can not only provide reference for the implementation of equity incentives in glass substrate industry enterprises.It can also guide enterprises to attach importance to the impact of strategic transformation on the implementation of equity incentives.Based on principal-agent theory,incentive theory,optimal pay contract theory and human capital theory,this paper uses event research method,comparative analysis method,descriptive analysis method and quantitative analysis method to combine Dongxu photoelectric development strategy for 2014.Research on the incentives,contract design and implementation effects of the restricted stock incentive plan,the first employee stock ownership plan and the second employee stock ownership plan released in October,January 2015 and July 2017.The results show that there are obvious differences in the motives for the implementation of the three equity incentives,and due to the unreasonable contract design and the uncertainty of the future market of the new business,the three equity incentives of Dongxu Optoelectronics have not been recognized by the market in the short term.In the long run,although to a certain extent The agency cost is reduced,but there is no significant improvement in innovation ability and enterprise performance.Based on this,it is recommended that enterprises should focus on the incentive motivation,contract design and company strategy when implementing the equity incentive plan;the government should further standardize the equity incentive management method to ensure that the equity incentive can be effectively applied in the enterprise.