A Case Study Of The Implementation Effect Of Sungrow Equity Incentives

The report of the 20th National Congress pointed out that in order to realize the great rejuvenation of the Chinese nation and strive to build a modern industrial system,we should focus on developing the real economy.In today’s highly competitive environment,business operations are facing great challenges.Due to the universalization of the principal-agent relationship,the ownership of enterprises and the right to operate have been separated,resulting in the worsening of the contradiction between the interests of owners and operators.In order to solve the above problems,enterprises choose to adopt equity incentives,which can maximize the enthusiasm of employees to work,which is conducive to enhancing corporate cohesion and enhancing corporate value.It has been nearly 30 years since the first use of equity incentives in China,and most enterprises still insist on using equity incentives to improve their operating conditions,but the specific implementation effect varies significantly from enterprise to enterprise.However,most of the current research on the implementation effect of equity incentives focuses on their motivation and financial performance,and the research on the implementation effect of non-financial needs to be expanded.How to make good use of equity incentives and adhere to long-term implementation has become a problem that enterprises need to consider.This paper selects Sungrow as a case,analyzes the motivation of Sungrow to implement equity incentive and the process of four equity incentives by combing the research literature on equity incentive at home and abroad,and using the literature research method,case analysis method and event research method on the basis of principal-agent theory,human capital theory and two-factor incentive theory.Comparing the changes in the elements of the four incentive plans,the capital market effect of Sungrow’s implementation of the four equity incentives was analyzed according to the short-term and long-term stock situation,and the investors’ support attitude towards the incentive plans was analyzed.The innovation of this paper lies in the selection of Sungrow cases and the analysis of the implementation effects of equity incentives that have been unlocked in the previous three times for comparison.Among them,the financial level selects business performance,profitability,agency cost analysis,and the non-financial level selects R&D innovation ability,employee turnover rate,market share,and customer satisfaction analysis.Highlight the effect analysis of Sungrow’s implementation of equity incentives at the non-financial level.Focus on the analysis of the incentive plan implemented in 2017 and 2018 for two consecutive years,analyze the actual effect of the implementation of equity incentive to Sungrow,put forward suggestions for improvement according to the implementation effect of Sungrow’s design of equity incentive program,and draw enlightenment according to the positive impact of Sungrow’s implementation of equity incentive to provide to other listed companies as a reference,hoping to provide successful experience for other enterprises with a point overview.Help listed enterprises better implement equity incentives and promote sustainable development of enterprises.