Study On The Effect Of The Implementation Of Equity Incentives

As the development speed of China's market continues to grow while the external competition is heating up,the company has encountered many difficulties in governance in its development.The reason for the difficulty is usually that the ownership of the enterprise is independent of the management right,and the owner and the shareholder are inconsistent in their interests.This leads to the emergence of the principal-agent problem,and the equity incentive can effectively solve the principal-agent problem arising from the separation of the two powers.As an important part of the modern corporate governance system,equity incentives refer to the long-term incentives implemented by the company to retain and motivate key personnel,and to promote the reduction of agency costs.It is one of the most critical parts of the corporate governance system and belongs to Issues that academics and industry attach great importance to.With the completion of the share-trading reform and the promulgation of a large number of policy initiatives,equity incentives have been widely used in domestic listed companies,especially in the manufacturing industry,and equity incentive policies have been gradually implemented.The manufacturing industry has played a very crucial role in the national economic system.However,many listed companies in China have adopted equity incentives in recent years.However,not all enterprises that adopt equity incentives have achieved the expected incentive effect.In this part,the paper summarizes and summarizes the important theories related to equity incentives,expounds the analysis of foreign and domestic analysis,selects the method of case analysis,takes Kexin Electromechanical Co.,Ltd.as an example,and implements the equity incentive plan for it.The main content of the incentive plan is introduced,and the five-year financial data before and after the incentive is used to compare with the average level of the industry.The results of the market performance are used as the basis to explore the short-term market changes of the company after the equity incentives are launched.The law further analyzes the market reaction of equity incentives,and also conducts business performance analysis based on non-financial indicators.Finally,it evaluates the Kexin Electromechanical Equity Incentive Plan,summarizes the problems in the setting and implementation of the plan,and puts forward some reasonable suggestions.The research results show that Kexin Electromechanical Equity Incentive has a positive effect on the company's performance.At the same time,it has obtained the experience and methods of implementing equity incentives in domestic listed companies,in order to provide some reference for the design and improvement of listed company's equity incentive plan.