Research On The Impact Of Equity Incentive Of Joyoung Shares On Enterprise Innovation Performance

Since the 20 th century,Chinese enterprises have sprung up like bamboo shoots after rain.In terms of corporate governance and business model,they have explored their own development path step by step by learning from foreign experience and combining with reality.In order to optimize their own management mode,expand their scale and improve economic benefits,more and more enterprises recruit professional managers to replace the owners to operate the enterprises,take care of the enterprise affairs,and make the enterprises more competitive in the market.However,after the separation of management rights and ownership,the interests of enterprise owners will be damaged due to information asymmetry or interest conflicts.In general,the separation of the two rights will increase the operating risks of enterprises.Therefore,many listed enterprises adopt the way of equity incentive to reduce business risk.If an enterprise wants long-term development,it should not only introduce professional managers to manage the company,but also have innovation ability.Reasonable equity incentive will not only help the innovation input of enterprise management,but also help to improve the innovation output of r&d technicians.In this case,the company selected Joyoung shares in the small household appliance industry to analyze the impact of three equity stimulates on enterprise creative performance.Firstly,it presents the industry background,equity and organizational structure,internal and external motivation of the implementation of Joyoung Stock.Secondly,according to the case introduction of the three times equity incentive plan,the experience,lessons and similarities and differences of the three times incentive plan are analyzed.Finally,by analyzing the influence path and effect of the three equity incentives on enterprise innovation capital investment,innovation personnel investment and innovation output,the research conclusion of this thesis is drawn,and the formulation of equity incentives for the improvement of relevant suggestions.This thesis draws the following conclusions: In 2011,Joyoung was suspected of interest transmission due to the unreasonable setting of the exercise conditions and exercise price of the equity incentive scheme.The failure of the equity incentive led to a significant reduction in r&d investment and a large loss of core technical talents,which had a negative impact on the enterprise’s innovation performance.Subsequently,equity incentive in 2014 and 2018 respectively learned from the previous experience and expanded the incentive scope and added reserved shares on the basis of 2014.Although the equity incentive schemes in 2014 and 2018 are different,they are both conducive to the improvement of enterprise innovation performance.Based on the above conclusions,this thesis holds that when formulating equity incentive plan,the company should appropriately extend the validity period of equity incentive,add innovation performance indicators and improve the performance appraisal system,which is more conducive to improving enterprise innovation performance.