The Case Study Of Equity Incentive In Mendale Household Textiles

From the 20 th century,as the global economy has been increasingly developed,the enterprise scale is enlarging.In this background,it is necessary to build professional manager system so as to deal with the complicate enterprise management.Manager system makes enterprise management professional,but also cause such problem as deviation of manager and enterprise owner.Therefore,to inspire manager,reduce agent cost,stock ownership incentive system seemed to be born at the right moment.The economic and legal background has been improved since the 1990 s when China first introduced stock ownership incentive system.Public companies in China tend to push out stock ownership in recent years.Therefore,the possible effects of stock ownership remain a controversial topic in theoretical cycle.This thesis is to discuss and evaluate the implementation of stock ownership incentive system based the case of Hunan Mendale Hometextile Co.,Ltd.which will be mentioned as Mendal in the following.This thesis is to study the financial effect of stock ownership incentive system based the case of Hunan Mendale Hometextile Co.,Ltd,via study method like event study,EVA model and Du Pont System.This article is divided into six parts.The first part of the thesis introduces the study background,significance,details and the methods of the operation of stock ownership incentive system.The second part briefly introduces the basic theory and the former research achievement of the system.The third part mainly focus on the motivation analysis of Mendale based on SWOT model.The fourth part is to compare the financial activities,financial index and market reaction before and after the operation of stock ownership incentive system in the company,and also to evaluate the business performance of the company based on the change of EVA.The fifth compares payments and equity incentive incomes of the incentive objects,meanwhile,analyzes and evaluates the strength of stock ownership incentive.The sixth is to evaluate the implementation effects of stock ownership incentive so as to come up with an optimization project..Based on the analysis,the thesis finally come up with conclusions as follows.Firstly,operation of stock ownership incentive has been performed positively in financial activities;Secondly,operation of stock ownership incentive has been performed positively in financial effects;Thirdly,operation of stock ownership incentive has helped the promotion of business performance;Fourthly,the market response of stock ownership incentive is obviously positive;Fifth,the arousal effect of stock ownership incentive to the senior executive is remarkable.