Research On The Effect Of Equity Incentive Plan Of H State-owned Listed Companies

The separation of ownership and management rights of modem companies causes agency problems between shareholders and managers,which increases the cost of the company and requires corresponding measures.Compared with the single-level agency problem of general companies,the dual agency problem among the government,shareholders and managers exists in state-controlled listed companies,which is more serious.Equity incentive is an effective way to solve agency problems by giving managers some equity,making managers become shareholders,sharing profits and taking risks.With the development of economy and society,the capital market is becoming more and more perfect More and more listed companies adopt equity incentive to solve agency problems.By 2017,447 companies have announced equity incentive schemes.However,equity incentives are not common in state-owned holding companies.Among the listed companies that announced equity incentive schemes in 2017,only 7%of them were state-owned enterprises,far less than 29.16%of the total number of listed companies.This paper chooses H state-owned listed companies in the automobile industry as the case study,introduces the basic situation of H state-owned listed companies and the equity incentive scheme and exercise of rights announced by the company,and analyses the motivation of implementing equity incentive from the aspects of the requirements of solving agency problems,the promotion of reform of state-owned enterprises,the trend of industry competition,the needs of strategic development of the company and attracting core talents.On this basis,this paper analyses the effect of equity incentive in H company from four aspects:market reaction,financial effect,non-financial effect and wealth growth of state-owned shareholders.The conclusion of this paper is that the equity incentive has brought positive financial and non-financial effects to H Company,promoted the preservation and appreciation of state-owned assets,and realized the growth of shareholders' wealth.At lsst,this paper evaluates the equity incentive scheme of H com+any,launches from three aspects:advantages,disadvantages and perfection suggestions,and puts forward some suggestions on improving the equity incentive scheme of H state-owned listed company in tenns of power conditions,performance evalnation index,financial leverage,market supervision and professional manager system,which can provide reference for the future formulation of equity incentive scheme of state-owned listed company.Set realistic significance.At the same time,this paper makes up for the blank of the case study of equity incentive of state-owned holding companies,and has certain research significance.