Research On Equity Incentive Scheme And Effect Of H Company

Compared to western countries,the development of the equity incentive in our country was relatively late and slow.Listed companies did not implement the equity incentive until the reform of split share structure.By implementing the equity incentive,a community can be formed by shareholders and executives and thus,they share the same benefits and risks.In addition,it can help the company to build a good image and contribute to the long-term development.The effect of equity incentive is different in different enterprises, and there are a large number of Listed Companies in China's pharmaceutical manufacturing industry.This paper select one of the companies to carry out research. Through the analysis and evaluation of the equity incentive plan and the implementation effect of Company H, it is found that there are shortcomings in the equity incentive plan and the improvement suggestions are given. This is of great significance to enrich the case study of the stock market incentive of listed companies in the pharmaceutical manufacturing industry.This paper attempts to establish a preliminary evaluation system of equity incentive effect based on the existing research of many scholars at home and abroad. Whether the implementation of H around the company's equity incentive can improve the executive management, investment, financing and short-sighted behavior and whether it can improve shareholder's wealth effect.The effect of the equity effect of H Company is compared with the level of self and the industry and the competitors, and the effect of the implementation of the equity, incentive of H company is evaluated, and the suggestions for improvement are put forward.The study found that the implementation of the equity incentive of H Company played a certain role in improving the management,investment short-sighted behavior and improving the shareholder's wealth effect. However,the decline of the relevant financial indicators in the later period also means that the incentive effect is insufficient,Executive finance short-sighted behavior relative to the average level of competition and the industry average effect, can be considered for the H company to improve the financing of the incentive effect is insufficient. In general, the implementation of H company equity incentive or have a certain effect.