Research On The Performance Of Equity Incentive In W Company

Since the early 1990 s,China began to try equity incentive,the CSRC has made continuous efforts to fill its legal gap,and some enterprises have tried to optimize corporate governance by implementing equity incentive.Practice has proved that equity incentive plays a certain role in reducing agency contradictions,reducing agency costs,stabilizing excellent employees and improving company performance.However,due to the great differences in the internal situation of the company,the implementation of equity incentive is restricted by many factors,and not all the companies that implement equity incentive have achieved good results.W company has implemented equity incentive three times since 2011.Studying the impact of its implementation of equity incentive on the company’s performance will help to improve the remaining problems of W company’s equity incentive,provide theoretical support for W company’s future equity incentive,and also provide some theoretical reference for companies that have not implemented equity incentive in the plastic pipeline industry.This paper selects the equity incentive implemented by W company as the research object,uses the equity incentive theory and evaluation methods,and uses the research methods of literature research,case study and quantitative research to study the impact of equity incentive on the performance of W company.It is mainly divided into five parts.Firstly,it combs the research of domestic and foreign scholars on the implementation motivation of equity incentive,the impact of corporate performance and the evaluation methods of equity incentive,and introduces the related concepts and basic theories of equity incentive.Secondly,it introduces the basic situation of W company,expounds the motivation of W company’s implementation of equity incentive,summarizes the specific content and implementation of W company’s three equity incentive plans according to the company’s announcement,and compares the differences of the schemes.Third,using the event study method,this paper makes a short-term market analysis on the ten days before and after the three equity incentive announcements of W company,and its stock market changes are more optimistic;Through the analysis of the financial indicators of W company from 2010 to 2021,it is found that equity incentive has a positive impact on the company’s profitability,solvency and development ability,but has little impact on the operating ability;By analyzing the non-financial indicators such as R& D innovation ability and personnel structure of W company,it is concluded that equity incentive can not only increase the R&D investment and improve the innovation ability of W company,but also optimize the quality of employees,which is conducive to stabilizing excellent talents and recruiting new employees.Fourth,according to the results of the analysis,the advantages of the equity incentive plan of W company are summarized,and the deficiencies in the implementation process are also obtained.Finally,in view of the shortcomings of W company’s equity incentive plan,this paper puts forward some improvement suggestions,such as improving the assessment indicators,formulating reasonable assessment objectives,expanding the number of incentives and so on.