Research On The Impact Of Termination Of Equity Incentive Plan On Business Performance

2006 was the beginning of the formal implementation of the equity incentive management method in China.After that,more and more listed companies launched the equity incentive plan.Between 2006 and 2018,there were 1,255 listed companies in China that announced a total of 2,240 equity incentive plans.However,343 of them were not successfully implemented,and only 57 of them were terminated in 2018.In this context,this paper will study the impact of the company's termination of equity incentive plan on business performance.The paper first introduces the research background of the research on the termination of equity incentive plan,and expounds the significance of this research topic,then combs the relevant domestic and foreign literatures,and summarizes the scholars'termination and performance of equity incentives,executive behavior and innovation ability.Relevant views of the relationship.In addition,it also counts the various types of data on the termination of equity incentives of listed companies in China and the reasons for the listed companies to terminate the equity incentive plan.This paper selects Jiangnan Chemical as a case study.Jiangnan Chemical launched the equity incentive plan in 2013 and announced its early termination in 2015.Based on this,it introduces the content,termination and impact on the business performance of Jiangnan Chemical's incentive plan.In this case,due to problems in the design of the incentive plan and the impact of external policies and other factors,the performance was not up to standard,which prompted Jiangnan Chemical to choose to actively terminate the equity incentive plan.The termination of the plan has a negative impact on the performance of Jiangnan Chemical to a certain extent,but in the long run,the initiative to terminate the plan that can not achieve the incentive purpose has a positive effect on the sustainable development of the enterprise.This paper will further analyze the impact's reasonIt is hoped that through the analysis and discussion of this case,the research scope of equity incentives will be expanded,and based on the conclusions drawn,relevant suggestions will be put forward to help listed companies better implement equity incentives and provide investors with the basis for decision-making.