Research On The Influence Of HU Company's Equity Incentive On R&D Innovation And Financial Performance

It is the consensus without doubts that technology is the first productive force,and the key of technology is talents.This concept is not only suitable for countries at the macro level,but also suitable for companies at the micro level.It is precisely based on this concept that there is a common saying: "The competition between countries,the competition between enterprises,in the final analysis is the competition between talents".However,the talent is scarce resource and wealth,and the meaning of scarcity is insufficient supply.Therefore,the importance of attracting talents,retaining talents,and giving a full play to talents is self-evident.In theory,a reasonable incentive mechanism is the key to attract talents and retain talents,especially for stock companies.Equity incentive is an important mechanism,which is widely considered to be able to make personal interests closely compatible with corporate interests.Moreover,this "bundling" mechanism can also make the personal development of talents and the long-term development of the enterprise achieve the effect of incentive compatibility,avoiding the problems of short-term by using the pure cash incentives and tight cash flow of enterprises.However,from the practical point of view,the practices and effects of different companies are very different with the equity incentive mechanism,and the phenomenon of personalization and heterogeneity is extruding.Therefore,it is of great enlightening significance based on the case analysis of the enterprise.This article takes HU company as an example,which is the only unlisted company of the fortune 500,to analyze the role of equity incentive in the process of the development of HU company from a small private enterprise with a registered capital of only 20,000 yuan to a world-class company with annual revenue of more than 700 billion.With the detailed exploration of the five phases of the implementation of HU company's equity incentive,it is concluded that the four characteristics as:large shareholding coverage,high amount ratio,no real rights of employees,and highdividend income.In addition,the corresponding data of research and development in HU Company validates that equity incentive measures have positive effects both on the cultivation of company talents and technological innovation.The vertical analysis shows that equity incentive has a significant effect on improving the company's financial performance both in the early and late stages of its implementation.The horizontal analysis with ZX company of the same industry compares the effects of different equity incentive models from three factors of revenue,solvency and global influence.Finally,based on the systematic research of the successful implementation of equity incentive measures in HU company,this article concludes three enlightenments: expanding the coverage area of equity incentives within the company,using equity incentives to solve funding problems,and setting up dynamic equity incentive models,which hopes to help the other high-tech companies.