Study On The Implementation Scheme And The Effects Of Equity Incentive Of Songcheng Performance

Since 1850 s,with the increasing expanding of joint stock companies,the management right and ownership of companies necessarily need to be separated.So the problem of principal-agent cost emerges.In such an environment,the conception of equity incentive emerges at the right moment.The equity incentive of western countries has developed relatively maturely,while that of our country starts relatively late.In 1993,Vanke firstly tried the stock option,and other enterprises followed one after another.On August 13 of 2006,China officially started to implement “Listed Companies Equity Incentive Management Approach”,marking that the listed companies of our country had gotten relevant legal basis when implementing the equity incentive.As a kind of incentive method of medium and long term,the incentive object influences the subjective factors such as its paying and labor to its company through gaining the stock of the company or the relevant benefit with stock,and binds the personal benefit and company benefit,so as to promote the performance of the company.In capital market,the stock price of a company can reflect the performance of the company,and the change of stock price concerns the benefit that incentive object can gain in incentive plan.For the influence on performance that listed companies implement equity incentive,it can be divided into the positive correlation theory,the interval correlation theory and the weak or even irrelevant theory.This paper will research on the equity plan of Songcheng Performance and incentive effect.It will confirm the influence of the stock ownership plan of Songcheng Performance,and analyze the the factors that influence its performance in equity incentive plan,to provide reference for listed companies to implement equity incentive from now on.This paper can be divided into three parts.The first part includes the statement to equity incentive concept and the introduction to relevant basic theory,and the trend and current situation of domestic and foreign equity incentive development.The second part emphatically researches on the equity incentive plan of Songcheng Performance,and analyzes the motive of implementing equity incentive,plan of equity plan and process.Then,applying all kinds of financial indexes,economic value added,stock price change,market share and so on and comprehensively applying comparative analysis approach,dupont financial analysis system,event analysis and so on,have a vertical comparison to the company performance and market change,and then have a contrast with the performance of the same industry.Analyze the influence of implementing equity incentive to performance for Songcheng Performance in different angles.The third part evaluatesand analyzes the equity incentive plan of Songcheng Performance,and puts forward some suggestions aiming at its existing problems.According to the analyzing results,we can get that would be acting in the implementation of equity incentive for several years,the Songcheng Performance not only in the profit ability,debt paying ability,operation ability and so on the financial data has been significantly improved,its economic value added also increased year by year,shareholders also won the cumulative abnormal return in the securities market,its equity incentive plan or overall success and worthy of reference.But would be Songcheng Performance's equity incentive plan also needs to improve in some aspects,this article also in expanding scale and improve the corporate governance structure improvement opinions are put forward.