The influence of equity incentive on enterprise performance

-- Taking L company as an example

Abstract

As an important way of modern enterprise management, equity incentive has been brought into business development planning by more enterprises, especially high-tech enterprises. Some high-tech enterprises use equity incentive to promote enterprise innovation and change, improve enterprise performance level, and the state has also given relevant policy support, focusing on retaining core talents and enhancing core competitiveness of enterprises. Based on the financial data of L company, a private high-tech enterprise, from 2016 to 2021, this paper focuses on two equity incentive schemes, and verifies the incentive effect according to the financial performance and non-financial performance during the implementation period, in order to find out the favorable aspects of equity incentive for the innovation and sustainable development of private high-tech enterprises.