The Research On Equity Incentive Of Listed Companies On GEM In China

Since the introduction of equity incentive in the 1990s,China's research on equity incentive has been carried out for more than 20 years.The relevant theoretical results have been quite rich.However,most of the scholars' studies have focused on the listed companies listed on the whole board.Conclusions may be more suitable for the board listed companies.Since the opening of the GEM in China in 2005,many listed companies listed on the GEM high-tech companies have also begun to implement equity incentives,however,the current characteristics of the GEM for the study of equity incentive theory is not rich enough for some of the GEM.The theory is also lacking.Based on this consideration,this paper selects the company T of GEM as a case study object,hoping the follow-up GEM listed companies to optimize the equity incentive program to enhance the incentive effect of equity to provide ideas,and also hoping to further enrich the incentive Related theory.In this paper,the listed companies listed on the GEM is a medium-scale,and high-tech enterprises,which is in line with China's GEM listed companies in the characteristics of the GEM market.At the same time,its earliest beginning in the"husband and wife shop" is also a typical family company.Equity incentives are also an important measure in the process of and professionalization.In China,GEM companies have developed more from family businesses,which is of great significance to future research.Company Tis one of the first-batch of 28 listed companies.On the basis of relevant theories,this paper analyzes the equity incentive behavior of GEM companies.First of all,combined with the relevant theory,this paper analyzed company T's three-stage equity incentive motivation.Secondly,it analyzed the reason of the third-stage equity incentive's cancel,and hoped to inspire the follow-up the companies.In addition,I carefully studied the revised plan of the two-way equity incentive plan of company T,and analyzed the rationality and shortcomings of the elements in the design of the equity incentive plan,and made suggestions for the improvement.Also,I studied the incentive object,the implementation of post-market response and the impact of the company's performance in three aspects of its implementation effect of the study.Finally,after the case study of company T,the case revelation of this paper is obtained.After this study,it is found that there were welfare motivations for the first equity incentive of company T.Under this motivation,the scheme of equity incentive plan did not chase the market,and there were many problems.Company T's second equity incentive was in the company's rapid development period,and it was an important stage of the professional process.This was an incentive-type equity incentive,but because of lacking experience,there were still some problems need to be corrected.Company T still existed high-level and the core technical staff left,the company's performance also showed a lack of successor problems.The third equity incentive was implemented for the company's new business sector,however,it was canceled in one month.This was closely related to the effectiveness of the equity incentive program design.As a result,after obtaining the case revelation from the case study,it showed that the most influential factor of the effectiveness of the equity incentive scheme design is whether the setting of each element in the scheme is reasonable.Due to the lack of its elements,T Company lacked the effectiveness of its equity incentive plan which affected the incentive effect.This paper made suggestions at the end.