Analysis On The Implementation Effect Of Equity Incentive In Enterprises

With the continuous improvement of China's socialist market economic structure and the continuous promotion of domestic equity distribution system,China's equity incentive system is more and more optimized in the enterprise management system,and more and more enterprises join in.Equity incentive measures have a great impact on corporate governance structure,executive incentive and other aspects,but also occupy an important position in the enterprise system.However,on the other hand,due to the shortcomings and deficiencies of China's market economy system,whether the implementation of equity incentive scheme can achieve the desired results or not will be affected by many uncertain factors.Therefore,the implementation of equity incentive is still a very important research topic.As a member of household appliance industry,Jiuyang shares has strong market competition driving force and fierce industry competition.Midea,Galanz and other large-scale household appliance enterprises gradually absorbed in,which greatly reduced the sales volume and influence of Jiuyang shares.In order to maintain a stable market share,Jiuyang needs to absorb and retain technical talents from all aspects,expand publicity and increase sales volume.Therefore,Jiuyang shares combined its own enterprise structure and made two equity incentive measures before and after.The first equity incentive measures in 2011 ended in failure,and the second equity incentive measures in 2014 were more reasonable,which brought good benefits to enterprises.Because Jiuyang shares has implemented two equity incentive measures,it has comparative significance and can better analyze the advantages and disadvantages between the two equity incentive measures.Therefore,this paper selects two equity incentive schemes of Jiuyang company as a case study.This paper mainly uses the case analysis method of literature research to analyze the case.First of all,this paper briefly introduces two kinds of equity incentive of Jiuyang stock company,and analyzes the motivation of implementing equity incentive from the perspective of internal and external environment.Then,it makes a comparative analysis on the implementation effect of Jiuyang stock by using the basic financial index analysis and EVA comprehensive performance.Then,it analyzes the two equity incentive schemes of Jiuyang stock company from three aspects: restraining managers' short-term behavior,reducing agency cost and attracting talents,and draws up the results and short-term market reaction of the two equity incentive schemes.Then it analyzes the implementation background,incentive object,exercise price and exercise price respectively,and analyzes the reasons of cancellation of equity incentive plan in 2011 and the factors of successful implementation in 2014.Finally,this paper puts forward relevant suggestions on the re implementation of the equity incentive scheme of Jiuyang Co.,Ltd.from the perspectives of formulating reasonable equity incentive scheme and improving the performance appraisal system,hoping to improve other aspects of the enterprise.This paper provides some reference for related enterprises to implement equity incentive companies.