Research On The Impact Of Equity Incentives On Corporate Performance Of High-tech Enterprises

In recent years,as the state has issued a series of policies to encourage enterprises to carry out independent research and innovation and build made-in-China brands,more and more high-tech enterprises with independent research and development patents have mushroomed and flourished,becoming an important force for China’s economic growth and research and innovation.For high-tech enterprises with obvious science and technology attributes,how to attract more excellent R&D talents while retaining talents is a problem they have to face.Therefore,more and more high-tech enterprises choose to implement equity incentive programs to help solve the problem of lack of talent and innovation,but also effectively alleviate the principal-agent problem of enterprises.However,what is the effect of the implementation of equity incentives in high-tech enterprises at present,and what experience does the effective enterprises have that are worth learning and promoting? This is the starting point of this study.This paper selects Yangjie Electronic Technology,"the key high-tech enterprise of National Torch Plan",as the case study object,and analyzes the basic elements and final implementation effects of the two-term equity incentive plan implemented by Yangjie Electronic Technology in 2015 and 2016.We hope to take this as an example to explore the impact of equity incentive scheme on corporate performance of high-tech enterprises and related enlightenment.This paper summarizes the development status of equity incentive,domestic and foreign literature and mechanism of action,and expounds the background,process,program elements and motivation of the implementation of equity incentive in Yangjie Electronic Technology.The performance impact on the case study part,this paper selected the three companies as the control group for comparison and analysis,then USES event study method to analyze the Yangjie Electronic Technology the short-term effect of equity incentive,and calculate the stock price in the two years from 2015 to 2016 the cumulative excess return,finally through the entropy weight method to calculate the company and the performance of the control group composite scores,And from the economic value added(EVA),financial indicators,R&D innovation indicators to further analyze the implementation effect of equity incentive plan.Based on case analysis in this paper,the following conclusions:(1)Through the analysis of Yangjie Electronic Technology ’ s equity incentive plan of science and technology,the scheme design for science and technology enterprises listed in the rapid development and in the periods,unlock the indicators and the significance of reference to the incentive object set on,at the same time there is need to unlock the index set up.(2)Through the analysis of stock price and performance before and after the implementation of stock incentive,it is found that stock price of Yangjie Electronic Technology is significantly boosted by stock incentive in the short term,especially in the first year.(3)According to the calculation results of entropy weight method,equity incentive significantly improves the company’s overall performance score in both the short and long term,while the score of the reference group without equity incentive has no significant change.From the perspective of the improvement results of performance indicators,equity incentive has a better impact on innovation performance than business performance,because for science and technology enterprises,the level of R&D technology determines their future income,so equity incentive will make the management and researchers spend a lot of energy in technological innovation,when a patent output,products will be fall to the ground and in the production,and then make the equity incentive performance will be a delay of performance,so as to make the equity incentive for Yangjie Electronic Technology operation management ability and the innovation performance in the short term and long term are has obvious promotion effect,However,equity incentive has no obvious effect on the company’s revenue,profit and return on invested capital in the short term,but has some improvement in the long term.According to the research conclusion,this paper gets the following enlightenment: when implementing equity incentive plan,enterprises should choose the time of equity incentive reasonably,set up multi-dimensional assessment index scientifically,increase the number of equity incentive appropriately,increase the number of incentive to key personnel and select the appropriate equity incentive mode.