Research On The Impact Of Equity Incentives On Executives' Financial Behavior And Corporate Performance

The development of the modern enterprise system has intensified the contradiction between the owner and the operator of the enterprise.The contradiction between the two is basically caused by the inconsistent goals.The owner of the enterprise expects the shareholders' equity to be maximized and the enterprise value to be maximized.Of managers expect to make the most profits in the business process,but often the managers will damage the company's long-term interests,even the current interests,when the pursuit of their own interests is maximized.appear.In the long-term development of the enterprise system,a method has emerged that can alleviate this contradiction between the manager and the operator within a certain period of time.By this method,the interests of the two are tied together,so that the operator and the enterprise The owner's efforts are in the same direction,and this method is equity incentive.The company's equity incentive plan gives the operator and the core personnel of the company equity when the operator reaches the performance goal,so that the motivation of the operator's hard work is no longer just to maximize personal interests,but also to maximize the value of the enterprise.To a certain extent,they have become more consistent,and the problem of separation of the two rights has also been improved.For the purpose of value-added opportunities for the company's own executives,the company's goals in making financial decisions changed from the original short-term performance increase to the long-term value appreciation of the company,and more emphasis was placed on the long-term development of the company.As the first batch of GEM high-tech enterprises,Dinghan Technology also has a fully implemented equity incentive plan.By studying the impact mechanism of Dinghan Technology's equity incentive on company performance,It can provide reference and reference for other listed companies in the details of the implementation of equity incentive programs..This paper mainly studies the influence of equity incentives on corporate executive behavior and then corporate performance.Firstly,the domestic and foreign research status of the influence of equity incentives on executive financial behavior and company performance is reviewed..Second,it defines related concepts.Then it sorts out the theoretical basis of equity incentives and analyzes the mechanism of equity incentives affecting company performance.On the basis of the previous theory,the design and implementation results of Dinghan's technology equity incentive plan were sorted out,and the impact of the company's equity incentive plan on the company's senior management behavior and company performance was analyzed.Draw conclusions based on the analysis of Dinghan's financial data : The implementation of Dinghan's technology equity incentive plan has both positive and negative impacts on the behavior of company executives,some are too radical,and some effects appear to have insignificant incentive effects.;Analysis of the company's performance indicators shows that the first phase of Dinghan Technology's stock option incentive plan has improved its performance.Finally,summarize the implementation of Dinghan Technology's equity incentive plan and draw inspiration from the success of Dinghan Technology's equity incentive plan.