Analysis of Equity Incentive Effect in Home Textile Industry

Abstract

With the continuous improvement and optimization of the legal environment in the domestic market economy, more and more enterprises began to implement the equity incentive plan. In such circumstances, the textile industry is also facing the traditional enterprise management can not retain talents, and the innovation ability of the whole industry began to decline. Home textile industry has also carried out strategic planning for its own enterprise development according to the changes of The Times. Home textile enterprises want to gain a foothold in the industry, there is no way to expand their own development through the traditional way, only in this era to seek a differentiated and distinctive development path can have the opportunity to surpass other enterprises, the development of the rules will eventually be opened by other enterprises. Therefore, in 2011, Fuanna took the lead in focusing on the equity incentive, and soon implemented it. From the very beginning, she showed the benefits of the equity incentive and the imperfections. After several years of development, other home textile enterprises also began to imitate. Therefore, equity incentive is gradually emerging in the home textile industry. However, with the prevalence of equity incentive, many problems have also been exposed. Equity incentive does not bring long-term effect for home textile enterprises, and often loses its effect in one or two years. Through regression analysis, the home textile enterprises are analyzed empirically, and found that the disadvantages of equity incentive and can be optimized. It provides some reference opinions for the development of equity incentive of home textile enterprises.