Research On The Effect Of Equity Incentive Of Suning Electric

Nowadays,the management mode applied by enterprises is becoming more and more complex,and the equity of enterprises is gradually dispersed,which will lead to the separation of ownership and control in many large enterprises in many countries.In order to effectively solve the principal-agent problem and properly motivate and restrain the core excellent employees,some large American enterprises begin to implement the enterprise equity incentive plan.In the 1980 s,the equity incentive plan was vigorously promoted and developed by some private enterprises and companies.With the rapid development of the economy and the continuous reform of the economic market,in the 1990 s,equity incentive has gradually attracted the attention of some listed enterprises.Compared with some developed countries in the west,China's equity incentive system for domestic enterprises develops slowly.However,different from the enterprise equity incentive system,the domestic securities market is developing rapidly.Based on this situation,how to motivate employees and make them adapt to the development of enterprises in work is an important part of enterprise management.The development of an enterprise cannot be separated from the efforts of employees.Only a stable employee management mode can enable employees to work with peace of mind and develop themselves and the enterprise while getting their due returns.Therefore,it is of great significance for the development of enterprises to actively explore the application and practice of equity incentive system in domestic enterprises.As a private enterprise with strong comprehensive ability,suning appliance has the advantages of earlier,faster and deeper research and application of equity incentive system than other domestic enterprises.Therefore,the author takes the equity incentive plan of suning electric appliance group as the research object.This paper mainly through literature review analysis of the current equity incentive research results,and the use of case analysis and comparative analysis of equity incentive on suning electric appliances financial indicators of the impact;At the same time,the event analysis method is used to study the impact of the implementation of equity incentive on stock price.In the research process of relevant materials,the author found several problems in the equity incentive plan.Second,the implementation of equity incentive has some negative effectson enterprises.In view of these aspects,this paper puts forward the corresponding improvement Suggestions,hoping to provide some reference for other domestic listed companies.In addition,Chinese enterprises should implement equity incentive on the basis of domestic economic environment instead of copying foreign experience.Only by combining national economic development strategy,combining enterprise internal management system and paying attention to employees' behavior trend can the effect of equity incentive system be brought into full play.