Study On The Influential Factors Of Implement Effects Of Equity Incentive In Chinese Listed Company

After nearly60years of practice and the constantly improved modern enterprise system today, the equity incentive has become an important long-term incentive. From2005when China started Equity Division Reform, China has issued a series of regulations about equity incentive, which created a favorable legal environment. More and more enterprises carry out equity incentives. According to the financial database statistics, from2006to2013, a total of633listed companies raised equity incentive plan. But from the evidence of corporate practice and empirical studies, not all companies using the equity incentives have achieved good results. Based on this reality background, this paper analyzed the effect of equity incentive and its influential factors with practical significance.In this paper, the standard research and case studies method are used. Based on previous classic literature and research on the equity incentive, this paper analyzes the mechanism of how factors affect the equity incentive. This paper argues that the effect of equity incentive is different from each other, due to the actual situation of enterprises. Different internal and external environment means different in applicability of equity incentive for enterprises, the different in the design and the implementation process of equity incentive for enterprises, eventually leading to different effects. So when companies carry out equity incentive, they should fully understand, research and analyze the internal and external factors of themselves.This paper has five parts. The first part makes out the background, domestic and foreign study review of equity incentive, the framework and methodology, the innovation and shortcomings of this paper.The second part mainly illustrates the theory basis and the types of equity incentive. And its special operation modes in our country are described.The third part is the core of this paper. Based on the theory basis, this paper discusses the results of equity incentive. On the basis of previous studies, this paper sorts out the specific factors that affect the implementation effect of equity incentive, and how these factors affect the effectiveness of equity incentive.The fourth part is case study. Under the guidance of theory, this paper analyses the effect of equity incentive plan of the listed company Hengkang Medical launched in early2013and the factors which influenced its effect.The last part summarizes this paper and gives out the possible suggestions for enterprises.