Research On Equity Incentive Of Naura

Because of the separation of ownership and management of modern enterprises,a series of principal-agent problems arise between owners and operators.As an incentive mechanism,equity incentive can give full play to managers’ subjective initiative and improve work efficiency.Since the Third Plenary Session of the 18 th CPC Central Committee,China has issued a series of guidance documents on equity incentive.As a way to attract core technical talents,equity incentive has been paid more and more attention by more and more enterprises.In this paper,Naura Technology Group Co.,LTD.(Naura),the first municipal state-owned listed company approved to implement equity incentive plan in Beijing,is taken as the research object.Based on the two-factor theory,principal-agent theory and human capital theory,the motivation of the company to implement equity incentive is analyzed.This paper discusses the influence of equity incentive on Naura’s short-term and long-term performance,draws the analysis conclusion,and puts forward the policy suggestions.The findings are as follows:(1)Naura increased its stock price through equity incentive.The capital market showed a positive reaction to the release of equity incentive plan,and the short-term effect of equity incentive was significant.(2)Naura’s financial indicators after the implementation of equity incentive perform well compared with those before the implementation of equity incentive,indicating that the implementation of equity incentive is conducive to improving the financial performance of the enterprise,improving internal operating efficiency and promoting high-quality development of the enterprise.(3)Naura has improved its human resource structure,enhanced its internal innovation performance,consolidated its core competitiveness and laid a solid foundation for its sustainable development through equity incentive.