Analysis Of Guangzhou Automobile Group Equity Incentive Implementation Effect

Equity incentive originated from western countries and was widely used by a large number of companies in the 1990 s.Up to now,equity incentive in western countries has been in a mature stage.However,China’s equity incentive plan was just introduced into the country in the 1990 s.Since it is different from foreign capital market and social system,there are some differences in the implementation effect of the incentive plan.This paper mainly stands in the environment of China’s capital market,and makes an in-depth analysis of the effect of the equity incentive plan implemented by the case company.This paper selects Guangzhou Automobile Group as the case study object to study the impact of its equity incentive plan implemented in 2014 and 2017 on the enterprise.On the one hand,the automobile industry is an important part of China’s national economy.In the document released by sasac in 2018,it was mentioned that the reform of mixed ownership should be deepened,employee shareholding should be actively promoted,internal incentive should be strengthened and corporate governance system should be improved.As a state-owned enterprise in the automobile industry,Guangzhou Automobile Group has certain research value in employee shareholding and internal incentive.On the other hand,in order to retain the company’s core talents and promote the performance of the enterprise,Guangzhou Automobile Group,as a technology-oriented enterprise,needs core r&d talents and senior management.One of the purposes of implementing the equity incentive is to retain the company’s core talents and promote the development of the enterprise.Therefore,taking Guangzhou Automobile Group as a case,this paper analyzes the motivation of Guangzhou Automobile Group group to implement the equity incentive plan on the basis of relevant theories of equity incentive.Then using financial indicators for two incentive plan before and after the implementation of enterprise financial performance and non-financial performance is analyzed,and the use of event study to two draft incentive plan released before and after the market reaction is analyzed,and the following conclusions:(1)in terms of financial performance,guangzhou automobile group played a significant role in the equity incentive plan as a whole,including the profit ability,operation ability and development ability improved,at the same time,the waiting period of amortization cost will not bring to enterprise financial burden;However,the implementation effect of the second phase of the incentive plan is not as obvious as that of the first phase.(2)in terms of non-financial performance,the two incentive plans promoted the improvement of the group’s market share,customer satisfaction and r&d innovation ability;(3)in terms of market response,the response of the first phase of the incentive plan in the short-term market and the long-term market is positive and positive,while the second phase of the incentive plan is relatively negative and negative.Finally,this paper points out the deficiencies in Guangzhou Automobile Group’s equity incentive plan,especially in the second phase of the incentive plan,and puts forward corresponding Suggestions for improvement.Finally,it is hoped that the research of this paper can bring some reference to other enterprises in the automobile industry.