Research On The Impact Of Equity Of Incentive Factors On Corporate Performance In The Pharmaceutical Industry

After the opening of the reform of China’s drug regulatory system in 2015,the pharmaceutical industry experienced rapid development.Major pharmaceutical enterprises seized the opportunity to comprehensively enhance their overall strength.Pharmaceutical enterprises look forward to making significant progress and must pay attention to employee demands,comprehensively improve their management level,and fully mobilize their work enthusiasm.The equity incentive system can effectively achieve this goal,which is a long-term incentive mechanism,To a large extent,it has solved the principal-agent problem of separating enterprise managers and owners,and the use of equity incentive measures is indispensable for attracting,motivating,and retaining outstanding talents.The equity incentive system is a crucial system in modern corporate governance.With the gradual deepening of pharmaceutical reform and the further development of the medical industry while benefiting the people,this article studies the application effect of equity incentive system in listed companies in the pharmaceutical field,seeks the selection rules of incentive elements for pharmaceutical companies when implementing equity incentive plans,and provides reference for pharmaceutical companies to formulate equity incentive plans.This article selects listed companies in China’s A-share medical sector that implemented equity incentive plans from 2015 to 2021 as the research object.Based on the theoretical basis of equity incentives,the hypothesis of the impact of incentive factors on corporate performance is proposed.Six of the nine major factors of equity incentives are selected for empirical research,and descriptive statistics and correlation analysis are conducted on the samples using SPSS28 and STATA17 software Multiple regression analysis and robustness analysis are used to explore the impact of incentive intensity,incentive mode,incentive price and other incentive factors on enterprise performance,and finally six conclusions are drawn:(1)The implementation of equity incentive plans can effectively promote the improvement of company performance,and the adoption of stock options has a weaker impact on enterprise performance than Restricted stock;(2)The incentive effects brought by different sources of equity are different,and the targeted issuance of shares to the incentivized objects is better than the incentive effect of repurchasing shares from the market;(3)There is a positive correlation between incentive intensity and company performance.The larger the proportion of shares that implement equity incentives,the better the company’s performance;(4)There is no significant correlation between whether the scope of incentive targets includes the impact of ordinary employees on company performance;(5)The greater the difference between the grant or exercise price and the stock price on the implementation date,the better the incentive effect;(6)The validity period involved in equity incentive plans does not have a significant impact on incentive effectiveness.Based on the research findings,propose regular opinions with characteristics in the pharmaceutical field for pharmaceutical enterprises,improve the implementation effect of equity incentives,and promote the improvement of enterprise performance;At the same time,it is proposed that the development of equity incentive plans should be more in line with the actual situation of enterprise business development,and finally,prospects for future research on equity incentive related content are proposed.