Study On The Effect Of Equity Incentive In Qingdao Haier

In the process of enterprise development,due to the principal-agent contradiction,enterprise managers have short-term behaviors for their own interests,which is not conducive to the long-term development of enterprises.In order to solve this contradiction,a long-term incentive mechanism is needed,and equity incentive is a long-term incentive method.Equity incentive is a kind of incentive mechanism commonly used by listed companies.Its purpose is to motivate and retain core talents.Equity incentive usually gives employees certain shareholders' equity,but this equity is attached with certain conditions.In this way,the interests between employees and shareholders are combined,so that employees of the company can work harder and get benefits.Introduced from abroad in the 1990 s,China's equity incentive system,the initial implementation of equity incentive of listed company quantity is less,but after 2006 to 20190 years of development,equity incentive has been in more than one thousand companies,with the increasing number of companies each year the implementation of equity incentive,the country's equity incentive to enter the stage of gold.However,its implementation results are worth our thinking,equity incentive in a part of the company played a positive role,but in a part of the company has the opposite effect.Based on this,this paper takes Qingdao haier as a case to analyze the implementation effect of equity incentive.Based on the principal-agent theory,human capital theory and incentive theory as the theoretical basis of equity incentive theory,this thesis explains the relevant factors involved in equity incentive,the approaches and effects of different incentive methods.Furthermore,Qingdao haier is selected as the case study object of this equity incentive,and its development process is integrated to analyze its motivation for implementing equity incentive at the present stage.Meanwhile,the content and implementation results of each phase of equity incentive are demonstrated.This thesis mainly adopts the methods of literature research,event research,financial index method,efficacy coefficient method and so on in this research,and analyzes the single equity incentive effect and cumulative incentive effect of four equity incentives.In the evaluation of the single incentive effect,the event study method is used to study the stock price fluctuation near the event date and the change of its EVA;In evaluating the cumulative effect,the financial index method and the efficiency coefficient method are employed to analyze the results.At the same time,it also analyzes its non-financial indicators,namely the management team stability and staff structure.Through the study of this case,it summarizes its advantages and disadvantages and gives reasonable suggestions.From the perspective of the single equity incentive effect,after the implementation of the equity incentive in Qingdao Haier,the stock price has risen by the limit for many times;the market effect is positive;the stock price has improved in the short term,but there is no significant change in the long term.In terms of the cumulative incentive effect,after the implementation of equity incentive,the company's debt paying ability,profitability and development ability have been significantly improved.In addition,the efficacy coefficient method is used to make a horizontal comparison.It is found that after the implementation of equity incentive,the comprehensive score of Haier in Qingdao has been higher than the average level of enterprises and industries that have not implemented equity incentive.After the implementation of the equity incentive plan,Qingdao Haier stabilized the management and core technical personnel and improved the company's financial performance.In view of this case,this paper gives some suggestions in the process of implementing equity incentive,urges enterprises to improve the problems in the implementation,and gives some enlightenment to other enterprises.