Study On The Evaluation Of The Implementation Of KDX Equity Incentive

Equity incentive as a long-term incentive mechanism,executive can hard work motivation effectively,reduce the short-sighted,executives pay more attention to long-term development of the enterprise,so as to optimize the ownership structure,improve the performance of the company.Therefore,equity incentive is also regarded as the best way to deal with the principal-agent problem of modern enterprises.At the end of the nineteenth Century,in western developed countries,equity incentive has been mature after many years of practice,and has been widely used by listed companies.In contrast,China's equity incentive started late,the development is not comprehensive.Until the end of 2005,the listed company equity incentive measures for the administration of the release of the marks the beginning of the equity incentive in our country in the true sense.Since then,the number of listed companies to implement equity incentive continued to grow year by year,as of the end of 2015,the introduction of equity incentive plan of a total of 808 listed companies,accounting for nearly 30%.However,different incentive schemes will have different effects,and many companies' equity incentive plan does not achieve the desired results.Whether the equity incentive system can improve corporate performance is worth discussing.In this paper,KDX composite material group Limited by Share Ltd as a sample to conduct a special research,firstly expounds the research background and significance,the domestic and foreign literature were reviewed,and then summarizes the related concepts and basic theory.In the principal-agent theory,human capital theory,based on two factor theory of KDX equity incentive plan implementation of the motivation,design,review plan implementation.Then we collected KDX data between 2009 and 2015,to evaluate the implementation effect of the equity incentive from the financial indicators,market reaction and mobility in three aspects.The KDX longitudinal analysis before and after the implementation of equity incentive,and then with the industry average,compare the typical industry company.The study concluded:(1)Financial indicators,the implementation of equity incentive KDX after the profitability,solvency,development ability were significantly improved.(2)In terms of market reaction,the market share has increased,the sales growth rate has increased significantly,and the share price has shown a good trend.After the implementation of equity incentive,the company reacted positively to the market.(3)Personnel mobility,reducing employee turnover,attracting a large number of outstanding talent,stability and motivation of the team,so as to enhance the performance of the company.Therefore,KDX equity incentive plan to achieve the desired effect.There are also some problems in the equity incentive plan,such as the establishment of performance evaluation indicators is too simple,too focused on the setting of the incentive target,ignoring the basic operational management,the conditions for the sale of shares is not clear.For KDX equity incentive problems,this paper puts forward the optimization suggestion:set up scientific performance evaluation index,reasonable choice of equity incentive targets and incentive proportion,improve the internal governance structure,provisions of the sale conditions.With the continuous improvement of China's laws and regulations,the capital market is more mature,based on the results of the monographic study of KDX,hoping to provide reference for China's listed companies to implement equity incentive plan.