Research On The Financial Performance Of Zhengbang Technology's Equity Incentiv

As a management method to deal with the internal governance problems of modern enterprises,equity incentive can establish the interest bond between owners and incentive objects,effectively alleviate the principal-agent conflict,reduce the turnover rate of core backbone personnel,and improve the performance of enterprises.At present,equity incentive has been widely applied in practice in China,and a lot of universal research results have been obtained.However,in order to give full play to the effect of equity incentive on enterprise performance,targeted research should be carried out according to the specific characteristics of each industry to ensure that equity incentive is suitable for different industry environments.As an important part of Chinese livestock husbandry,pig breeding industry has been paying much attention because of its important position in national economic system and cyclical operation characteristics.With the withdrawal of a large number of retail investors and the acceleration of industrial capacity clearance,the pig breeding industry shows a trend of scale and the development of the whole industrial chain.Enterprises pay more attention to the investment in breeding scale,breeding pig and disease prevention and control.In order to establish a competitive advantage and continue to absorb management talents and core technical staff,more and more pig breeding enterprises begin to implement equity incentive.However,at present,there are few researches on equity incentive in pig breeding industry in China.In order to enrich the diversity of equity incentive case studies and improve the governance effect of breeding enterprises,this paper focuses on the study on the financial performance of equity incentive in pig breeding industry.Based on the above background,this paper selects Zhengbang Technology from 2015 to 2019 five consecutive equity incentives as the research object,analyzes and evaluates the implementation effect of equity incentives from the perspective of financial performance,finds out the advantages and disadvantages of Zhengbang Technology’s equity incentives and puts forward corresponding optimization suggestions and safeguard measures.On the whole,the equity incentive of Zhengbang Technology has made a certain contribution to calming cyclical fluctuations,and has played a certain role in improving financial performance.However,the performance of the enterprise is greatly affected by the cyclical factors of the industry,and there are problems in the implementation of equity incentive such as single assessment index and lack of long-term incentive effect,so the final incentive effect is not significant.In view of the above situation,this paper puts forward the corresponding optimization suggestions: establish a diversified performance evaluation index and combine with periodic design of incentive scheme.At the same time,it puts forward three safeguard measures for the smooth implementation of equity incentive for enterprises: improve the information disclosure system,optimize the supervision and management system and ensure the financial management department’s support and guarantee role in equity incentive.It can provide reference for the case enterprise and other pig breeding enterprises to implement equity incentive.