Research On Equity Incentive Improvement Of Huaxia Happy Real Estate Enterprise

With the tightening of real estate around Beijing and the increasing of real estate purchase restrictions,the debt ratio of Huaxia Happiness is rising and the capital flow is deteriorating.In order to alleviate the debt pressure,Huaxia Happiness began debt restructuring,and in 2018,Huaxia Happiness began equity incentives,hoping to stimulate the enthusiasm of employees through equity incentives,so as to improve the financial situation of the enterprise.This paper takes the equity incentive implemented by Huaxia Happiness on July 6,2018 as the research object,and analyzes the impact of equity incentive implemented by Huaxia Happiness on financial performance.First of all,it introduces the equity and financial situation of Huaxia Happiness,analyzes the motivation of its equity incentive based on the market environment,the company’s demand for talents,and national policies,and introduces the restricted stock incentive plan and stock option incentive plan of Huaxia Happiness.Then,from the perspective of financial indicators,financial leverage and stock returns,the change of enterprise financial performance is analyzed.It is found that after the implementation of equity incentive in 2018,Huaxia Happiness’s financial performance has been significantly improved in the short term,but its financial performance has declined rapidly in 2020,indicating that equity incentive has a large impact on financial performance in the short term,but not in the long term.Specifically,after the implementation of equity incentives in 2018,Huaxia Happiness’s solvency,operating capacity and financial leverage have been continuously optimized,reducing its financial risk.However,its profitability and financial performance are more improved in the short term.In 2020,its profitability and financial performance declined significantly,and its growth capacity continued to decline after the implementation of equity incentives.It shows that the equity incentive of Huaxia Happiness improves the solvency of the enterprise,but the impact of equity incentive on the financial performance and profitability of the enterprise is more short-term promotion,and has a lower impact on the growth of the enterprise.And use the analytic hierarchy process and efficiency coefficient method to evaluate and compare the performance of Huaxia Happiness before and after the implementation of equity incentive.According to the evaluation results,the existing problems of Huaxia Happiness’s equity incentive are analyzed as follows:the incentive unlocking index is single,the incentive mode is relatively single,the number of stock incentives is small,and the equity incentive period is short.And analyze the reasons for the problems of equity incentive from the internal and external.Based on the above research conclusions and in combination with the problems existing in the equity incentive of Huaxia Happiness,this paper puts forward the objectives and optimization suggestions of the equity incentive of Huaxia Happiness,including the establishment of a multi-indicator performance evaluation scheme,the introduction of a virtual equity scheme and the extension of the duration of the equity incentive.In order to ensure that equity incentive can be implemented,relevant safeguard measures are proposed from the aspects of optimizing corporate governance structure,establishing equity incentive implementation organization,optimizing equity incentive system guarantee,forming corporate culture of equity incentive and strengthening the publicity of equity incentive optimization plan.It is hoped that Huaxia Happiness Company can refer to the above suggestions and start the next phase of equity incentive plan as soon as possible to give full play to the role of equity incentive and help enterprises out of the cold winter.