Research On Equity Incentives Of Listed Companies In The New Third Board

Following the main-board,the SME Board and the GEM,the new three board have appeared in Chinese securities capital market stage.The NEEQ plays a very significant role in the improvement of Chinese existing capital market system.The number of new three board listed companies have increased rapidly since 2014.In the end of 2016,the companies have reached 10,163 and are much higher than the Shanghai and Shenzhen listed companies.Listing in the new three board,means that these companies can entry into the capital market in China.This is important to the vast majority of the new three small and medium enterprises.In view of the new three board listed companies in the company’s asset size,cash flow and other restrictions,it is necessary to some.enterprises want to attract senior management personnel and core staff by equity incentives.Compare of A-share market,the new three board is not perfect in the equity incentive system.At present,equity incentive in the new three board companies highlights the strong flexibility in practice.It is necessary to explore equity incentive in the new three board companies by the case.Firstly,this paper studies some theories,including the principal-agent theory,the theory of human capital property right,the theory of incentive and the theory of enterprise growth.Then the paper expounds the common types of equity incentive.Secondly,it introduces the background of current equity incentive in China from three aspects: capital market,corporate governance and legal system.It expounds the development process,current situation and relevant issues of new three board.Introduced the relevant provisions of the new three board equity incentive,situation of listed companies to implement,compared common factors with A shares market,we aid to explain flexibility in the NEEQ incentive plan.This paper analyzes the necessity and operational flexibility of the equity incentive,and tries to evaluate the equity incentive from the financial information of the company,the performance of the secondary market and the growth of the company.Finally,we give some suggestions from the macro and micro level.In macro matters,enterprises need to enhance the market’ effectiveness,introduce specific business guidelines as soon as possible,strengthen external supervision and information disclosure;in the micro aspect,these companies need to assess the equity incentive objective and improve corporate governance.This paper concludes is that: Firstly,the operation method for equity incentive plan has a better innovation in Yunnan culture,which complete the incentive through the private placement to incentive partners.This method can guarantee the clarity of the company’s equity;Secondly,the Yunnan culture is limited by its own company size,business and business strategy to evaluate its incentive effect,the financial information level can not reflect the positive effect,non-financial information can reflect a positive impact.This paper analyzes the shortcomings of the equity incentive of Yunnan culture to lay the foundation for the future implementation of equity incentive plan,and also provides reference for the implementation of equity incentive for the new three board companies.In the shortcomings,because of the limitations of the data,in the evaluation of Yunnan cultural equity incentive effect,a little lack of more in-depth study;the proposed recommendations for other companies,there is a certain lack of applicability.