Effect Analysis Of Equity Incentive Program Of Jiu Yang

In the early 1990s,China introduced the equity incentive mechanism for the first time.In December 2005,China Securities Regulatory Commission issued a "listed company equity incentive management approach(Trial)",marking the formal establishment of China's equity incentive mechanism.Although since 2006,China's listed companies in the practice of equity incentive is increasing,but the implementation of equity incentive plan more and more companies at the same time,the suspension of equity incentive plan of the company is also a minority.In the practice of equity incentive in China,the implementation of equity incentive is facing many serious problems,common is that many companies in the implementation of the equity incentive plan was revoked,there is no real effect of equity incentive.Jiuyang shares in 2011 put forward the first equity incentive program,but the same year was forced to withdraw,after three years,nine Yang shares in 2014 announced the second equity incentive plan and the smooth implementation.This repeated process,for our study of China's listed companies equity incentive program design and implementation of the incentive process in the process of many problems provide a rare opportunity.This paper first elaborates the theoretical basis of equity incentive,and combs the domestic and foreign literature related to equity incentive.On the basis of this,this paper takes Jiuyang shares as the case company.Firstly,it analyzes the implementation background and implementation motive of the two equity incentive schemes of Jiuyang shares.Secondly,it analyzes the implementation process of the equity incentive plan of Jiuyang shares,Jiuyang shares two different equity incentive program design,the reasons for the revocation of the first equity incentive program and the reasons for the smooth implementation of the second equity incentive program analysis;it is important for the successful implementation of the second successful Jiuyang shares Equity incentive program to carry out the effect analysis,mainly on the market performance,business performance and financial performance were analyzed.Finally,the conclusion of the case is obtained and the suggestions are given from three aspects:equity incentive motive,implementation timing choice and program element design.This paper draws the following conclusions:First,the company in the formulation of equity incentive plan in order to make the incentive to play its incentive role,need to design a reasonable incentive program of the contract elements,because these factors will affect the implementation of equity incentive companies Effect.In this case,in particular,we should focus on the setting of the exercise price and the terms of the exercise.Second,the factors that affect the implementation of equity incentives,the timing of the implementation of the election is also very important.Combined with the company announced the implementation of the equity incentive plan when the implementation of the background,the company's stock price needs to have some room for development in order to be conducive to the implementation of equity incentive plan;the other hand,the smooth implementation of equity incentive plan also benefited from the company's full disclosure,The company will fully convey the equity incentive information to the market,only the market reaction is positive,to be able to obtain market investors recognition,the company can effectively implement the equity incentive plan.Otherwise,the information asymmetry of the situation and the negative market reaction,will certainly be like Jiuyang shares of the first equity incentive plan was suspended.