The current research on equity incentives and inefficient investment has not yet formed a consistent conclusion, and most of the research cases are mainly in high-tech industries. Sichuan and Henan are the major livestock provinces in China, and the development of livestock enterprises in the region affects the national economy and people's livelihood. Taking Muyuan and New Hope as cases, this paper draws the following conclusions.: performance-based equity incentives stimulate management to increase the scale of investment, but companies with a large disparity in compensation within the executives are prone to overinvestment; when raising capital, companies with more financial resources utilize debt financing, especially long-term debt, and lesser ones improve working capital management efficiency. The findings of the study can provide a decision-making basis for equity incentives in livestock enterprises.

Junwei Yuan. A Comparative Study of the Effectiveness of Equity Incentive Implementation between Muyuan Stock and New Hope. Academic Journal of Business & Management (2023) Vol. 5, Issue 26: 148-152. https://doi.org/10.25236/AJBM.2023.052623.

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