Research On The Influence Of Equity Incentive On The Performance Of Hikvision

Technological innovation is the source of enterprise development.During the 13 th Five Year Plan period,China’s economy entered the "new normal" development stage.The new development concept of "innovation,coordination,green,opening and sharing" in the new era affects the development of security industry.The Ministry of public security,relevant national ministries and local governments have issued some policies,which provide new opportunities for the development of China’s security enterprises.China’s security industry has been fully developed with the continuous innovation of information technology and the support of national policies,and the total output value of security industry has increased year by year.In the fierce market competition,the core competitiveness and technological innovation are called the source of the continuous development of enterprises.As a long-term incentive means,equity incentive mechanism has been favored by more and more enterprises in reducing the principal-agent cost brought by equity separation,improving the company’s performance and attracting high-end talents in the fierce competition.This paper combs the literature on the impact of equity incentive on corporate performance from three aspects: equity incentive model,incentive object and different industries,and finds that security enterprises are mostly small and medium-sized enterprises,and the number of Companies Implementing equity incentive is not large and the effect is different.The security industry is in a steady rising stage.In the next few years,it will be a golden stage for the development of China’s security industry.In previous studies,few scholars have focused on the analysis of security enterprises alone.The research object of this paper is Hikvision,the leading enterprise in the security industry.The sales volume of monitoring equipment has been the first in the world for eight consecutive years.In 2018,the market share of Hikvision occupies one third of the world,and the market share is from 20 After 10 years of listing,equity incentive will be implemented every two years.In terms of technological innovation,R & D investment will be increased and new products and technologies will be developed.It has positive theoretical and practical significance for the further development of equity incentive in security industry to study the impact of equityincentive on performance of Hikvision.Firstly,this paper defines the concept of corporate performance and analyzes the mechanism of equity incentive.Based on the incentive theory,principal-agent theory,information asymmetry theory and human capital theory,this paper analyzes the motivation of implementing equity incentive in Hikvision.Combined with equity incentive scheme,security industry background and corporate governance structure,this paper studies the path of equity incentive in Hikvision.Secondly,combined with the equity incentive plan of Hikvision company,this paper analyzes the impact of equity incentive on performance.This paper uses financial index method,trend analysis method and factor analysis method to quantitatively analyze the impact of equity incentive on market performance and financial performance of Hikvision,and uses non-financial indicators to qualitatively analyze the impact of equity incentive on innovation performance and human resource structure of Hikvision.Finally,through the case analysis of the implementation of equity incentive in Hikvision,combined with the problems in the implementation process of equity incentive,summarize the relevant enlightenment for the security industry for reference.Based on the research on the four phase equity incentive plan of Hikvision,combined with the changes of market performance,financial performance,innovation performance and human resource structure of Hikvision,the following conclusions are drawn: first,from the perspective of market performance,the issuance of equity incentive announcement has brought positive market effect;second,from the perspective of financial performance,the implementation of equity incentive plan has generated accumulation Third,from the perspective of innovation performance and human resource structure,the implementation of equity incentive scheme has played a positive role in the stability of the company’s core technical staff and the company’s investment in technological innovation.The innovation of this paper is as follows:1.Industry entry point is novel.Intelligent security is the product of Security + artificial intelligence,which is in line with the current direction of scientific and technological progress.With the popularization of artificial intelligence internet of things and the development ofnational policies for the security industry,the security market involves rail transit,smart city,smart home and many other aspects,and the development of research security enterprises conforms to the current trend of the times;2.The research angle is unique.This paper measures the impact of equity incentive on performance from three aspects of market effect,financial index and non-financial index,and introduces factor analysis method in the process of financial performance research to comprehensively evaluate the performance of Hikvision company,and analyzes which index the impact of equity incentive on financial performance will affect.