Analysis On The Implementation Effect Of Equity Incentive In Hengrui Medicine From The Perspective Of Investment Efficiency

As an incentive method to solve the conflict of interest between the owner and the operator after the separation of two rights,equity incentive affects the business behavior of the incentive object and further affects the performance of the company.Investment decision-making plays an important role in improving enterprise performance and promoting the long-term stable development of enterprises,and investment efficiency can be used as an effective basis for investment decision-making,affecting the future value of enterprises.In view of the domestic and foreign scholars’ current research on the implementation effect of equity incentive mainly focuses on the enterprise performance,there are few researches on the implementation effect of equity incentive from the perspective of investment efficiency.In this paper,by way of example of Hengrui Medicine research enterprise after the implementation of equity incentive impact on investment efficiency,in order to determine whether a company’s equity incentive to achieve the desired effect,and then summarizes the equity incentive plan is worth based on the experience of the promotion,either for other enterprises to provide a reference when designing the equity incentive plan can help investors and other related interests of the people to effective judgment and ability to understand the business situation and the future development of listed companies.On the basis of introducing the research background and significance,this paper sorts out relevant literature at home and abroad to understand the current research status.Secondly,by analyzing the investment and financial data of Hengrui Medicine from 2001 to 2018,and comparing with China resources shuanghe which has never implemented equity incentive and the industry average,the effect of Hengrui Medicine’s equity incentive on investment efficiency is analyzed.Next,the implementation effect of the equity incentive of hengrui is evaluated,and the experience and shortcomings of the equity incentive plan implemented by the case company are extracted.The success of Hengrui Medicine’s equity incentive lies in the following aspects: first,Hengrui Medicine has continuously implemented equity incentive to ensure the overlapping of incentive system,timely draw on previous experience,and gradually form a unique,complete and mature incentive scheme;Second,the incentive mode selected by the company is restricted stock mode,which is more suitable for the characteristics of the enterprise,with relatively strong binding force and good incentive effect.Third,it has set up appropriate incentive targets.According to the development conditions and strategic objectives of the enterprise,it has comprehensively considered the rights and interests of the management,shareholders,employees and other parties.In recent years,it has continuously increased the incentive proportion of middle-level managers and important employees in the holding subsidiaries,and truly built a communication bridge from the decision-making level to the executive level.Fourth,hengruiding’s equity incentive period is reasonable,in line with the characteristics of national policy planning,but also facilitate the response to market risks.However,the design of performance unlock index in the equity incentive plan of the case company also has some shortcomings,such as excessive attention to financial indicators,insufficient indicator setting,loose exercise conditions and low exercise price,which to some extent inhibit the effectiveness of the equity incentive of henrui.In view of the above problems,this paper proposes that enterprises should scientifically estimate their ability to increase their performance while fully understanding the overall economic environment,industry status and enterprises.The unlocking ratio should be set reasonably to maximize the "incentive" of the equity incentive plan.To flexibly adjust the incentive program,the design of incentive objects,incentive number,exercise conditions and other contract elements should be timely adjusted with the changes in the enterprise operation,not to over-indulge in the past achievements.