| Since the New Normal,the competition in the frontier science and technology field is very fierce,and countries have strengthened the competition for key resources such as technology and talent.In the context of building a powerful country in science and technology,technology-based enterprises actively implement equity incentive plans in order to improve their independent innovation,attract and retain talents.Equity incentive can reduce the cost of agency by issuing the right to purchase the company’s shares at a low price to enterprise managers or other core employees.However,scholars have different views on the implementation effect of equity incentives.One view is that equity incentives stimulate the work enthusiasm of incentive objects,and then promote the promotion of enterprise value.While,another view is that equity incentives give managers more shares of the company,which will lead to rent-seeking phenomenon of power,leading to the decline of enterprise value.In addition,there are also documents that believe that equity incentive has nothing to do with enterprise value.The reason for this dispute may be that multiple factors,such as region,enterprise type,equity incentive design scheme,etc.,will affect the results of equity incentive implemented by enterprises.The existing research mostly adopts empirical analysis method,which cannot be applied to specific cases.In this regard,this paper,based on the theory of corporate finance,combined with literature research and case analysis,explores the implementation effect of Zhenhua Technology’s equity incentive from the perspective of market response,financial performance and non-financial performance.This paper analyzes the equity incentive plan and implementation motivation of Zhenhua Technology,and puts forward the following assumptions on the implementation effect of equity incentive:first,the short-term and long-term markets respond positively to the equity incentive of Zhenhua Technology;Second,the equity incentive of Zhenhua Technology has improved the financial performance of enterprises;Third,the equity incentive of Zhenhua Technology has improved the non-financial performance of enterprises.The research found that: first,in terms of market response,the event analysis method and market value analysis method were used to obtain the short-term market response of Zhenhua Technology’s equity incentive,which was positive and could improve the market value of enterprises.Second,in terms of financial performance,Zhenhua Technology can improve its profitability,debt repayment and development ability by applying the financial index method.Through EVA analysis,it is concluded that equity incentive can significantly improve the economic value added of enterprises.Based on the factor analysis method,through the horizontal comparison of its own factor scores and the vertical comparison with other enterprises in the same industry,it is concluded that equity incentive can promote the comprehensive performance of Zhenhua Technology and the improvement effect is good.Thirdly,in terms of non-financial performance,from the perspective of scientific research staff loyalty,research and development ability and staff quality,it shows that equity incentive can not only retain high-tech talents,improve enterprise research and development investment,but also improve the comprehensive quality level of enterprise staff.Using the DEA analysis method,it is found that Zhenhua Technology’s equity incentive can effectively promote the improvement of innovation efficiency and the incentive effect is higher than other equity incentive enterprises.The growth rate of long-term asset investment shows that equity incentives can promote the investment activities of enterprises to a certain extent.Therefore,the implementation effect of equity incentive of Zhenhua Technology is good.Through the analysis and research conclusion,this paper draws the following enlightenment: enterprises should set reasonable conditions for exercising rights,select the right time to implement incentive plans,improve the internal governance mechanism of the company and pay attention to high-level scientific and technological talents.The research in this paper provides case evidence for the positive promotion of equity incentive to the value of technology-based enterprises,and also provides reference for other technology-based enterprises in the same industry to implement equity incentive plans. |
