Research On The Effect Of K Company’s Equity Incentive Program

One of the distinctive features of modern enterprises is separation of ownership and control rights. This is the inevitable result of the expansion of enterprise capital and scale. With the separation of ownership and control rights, the principal-agent problem for enterprises is becoming more and more important. Finding common ground in the middle management and management layer, become the focus of the modern enterprise. In the fifties of the last century, the United States started to equity incentive, after half a century of development and exploration, equity incentive has become one of the most important means to solve the problem of principal-agent, to some extent, it can make the management’s interests tend to be consistent with the shareholders’.Since the 21st century, with the improvement of the capital market in China and the promulgation of the relevant laws and regulations, the implementation of equity incentive in our country had a perfect environment. In 2006, China securities regulatory commission issued "the measures for the management of the listed company equity incentive (try out)", this is the first guidance document on the implementation of equity incentive for listed company. After nearly 10 years of development, our country’s listed companies have realized the significance of equity incentive to solve the problem of agency, and actively promote the implementation of equity incentive.K is a gem listed company and the typical medium-sized high-tech enterprise in our country. Based on K Company’s equity incentive program, this dissertation studies if it has effect on K’s business performance and human resources. There are six parts in this dissertation. The following is the main content of each part.The fist part is introduction, makes out the writing background, research purpose and meaning of this dissertation, and introduces the research methods and writing ideas.The second part introduces the definition and theoretical basis of equity incentive and fish the relevant literature review.The third part introduces the background and specific program of K’s equity incentive. In the first, this part introduces K’s background, including company profiles, profile and distribution of human resources. Then this part introduces the feasibility and necessity of the implementation of equity incentive. Finally, this part describes K’s equity incentive program.The fourth part analyzes specific cases, mainly analyzes the effect after the implementation of equity incentive programs generated. Firstly, this part analyzes the economic consequences, and in conjunction with the relevant financial metrics, analyzes the impact of the equity incentive program. Then this part analyzes the effectiveness of equity incentive program for human resources and the effects for R & D expenses.The fifth part analyzes the success factors of K’s equity incentive program, focusing on three aspects as incentives, incentive objects and vesting conditions, and summarizes up the reason for its success.The sixth part summarizes the conclusions of this dissertation, and look to the future research.At present in our country, the studies of equity incentive, mainly concentrated in large enterprises, the studies of high and new technology enterprise also has centered on state-owned high-tech enterprises. As the high and new technology enterprise grows, they become indispensable power of China’s economic transformation. Study of their equity incentive plan, has a certain practical significance. Based on the data analysis this dissertation concluded that, the implementation of equity incentive has a positive effect on the growth of operating performance and the stability of key technical staff. Conclusion of this dissertation provides a reference for other science and technology enterprises.