Analysis On The Effect Of Stock Exchanges In Stock Exchanges

The concept of equity incentive first appeared in the United States in the 1950s,after decades of development and continuous improvement,Western countries generally use this incentive to retain the company’s core staff,especially in developed countries,corporate Incentives have been widely used,and achieved great results.Domestic equity incentive system originated in the last century 90’s,with the beginning of 2005 after the split share structure reform gradually opened the prelude to equity incentive.In 2006,the Company promulgated the Measures for the Administration of Equity Incentives for Listed Companies(for Trial Implementation)and the Guidance Opinions on Implementing Employee Stock Ownership Plan of Listed Companies in 2014,all of which have greatly promoted the development of China’s equity incentive system.As of December 31,2015,78 of the 162 A-share listed companies in the software and information technology services sector accounted for 48.15%and nearly 50%of the equity incentive plan.Obviously,the industry due to the special nature of the industry for the implementation of equity incentive plan special attention.This paper first combs the literature about the effect of equity incentive at home and abroad,the market reaction and the factors that affect the effect of equity incentive.Then,the author introduces the related concepts of equity incentive and the main incentive patterns in China.Theory related to equity incentive:incentive theory,principal-agent theory and human capital theory.On the basis of this,the implementation effect of the three-stage equity incentive plan introduced by China NET Center is analyzed as follows:Firstly,the three-stage equity incentive plan and the completion condition are described,and then the financial indicators and non-financial indicators are used for the three-stage equity incentive The implementation effect of the plan is analyzed,mainly using the financial indicators to carry out horizontal and vertical comparative analysis of the implementation effect,non-financial indicators from the following three aspects to analyze the market reaction,innovation performance and brain drain rate three aspects to analysis.Through the analysis of the effect of the implementation of equity incentive,we can see that the implementation of the equity incentive plan makes the profitability and growth ability of the network technology have been greatly improved,and the abnormal indicators related to solvency have gradually recovered,but the operational capacity and Not much improvement.In the market response,the equity incentive plan for the company to bring a positive market response,product market competitiveness has also been improved,the market share increased year by year.The company’s R&D investment is also increasing year by year,innovation capacity has been enhanced,the brain drain rate through the implementation of equity incentive plan has been reduced,and far below the industry average.Equity incentive performance of the main performance indicators and a single lower threshold;eager to achieve performance goals,ignoring the management of the grassroots enterprises,for these two issues put forward the following recommendations:the establishment of a reasonable performance indicators assessment system,improve the internal governance structure.