Study On The Influential Factors Of Implement Effects Of Equity Incentive

Principal-agent problem is the core problem in modern corporate governance,and the equity incentive is an important tool to solve this problem.From August 2016 when the new equity incentive plan was put into force,listed companies in China reported more and more equity incentive schemes.The enthusiasm of listed companies to implement equity incentive ran high,but the implementation effect is not always satisfactory.The motivation of the equity incentive is motivated by internal and external factors about industry background,corporate governance structure and the corporate characteristics,the design of each element of the equity incentive plan determines the rationality of the scheme,equity incentive results may also be due to Design of contract structure and execution process,so the good incentive motivation does not necessarily lead to good results.Both domestic and foreign studies have found that the implementation effect of equity incentive is not optimistic.Based on this,this paper intends to study the effect of equity incentive and its influencing factors.In this paper,the standard research and case studies method are used.Based on the theoretical analysis of the principal-agent theory,Incentive theory,Human Capital Management and Resource-Based View,on the basis of,this paper analyzes the three equity incentive plans of ZTE,for studying the mechanism of how factors affect the equity incentive.ZTE's three equity incentive plan vary with the change of the enterprise strategy,on the whole have distinct TMT industry characteristics,but individual elements out of the enterprise strategy have poor implementation effect.This paper argues that the implementation of the enterprise's equity incentive plan should be dominated by enterprise strategy,should focus on long-term interests on the design of specific elements of contract,especially on the design of incentive conditions to qualify for the integrity and insufficiency of enterprise strategy,and should have a breakthrough but be practical,focus on both historical data and the industry data.Finally,this article analyzes the short-term capital market reaction,long-term operating performance,and the human resources of ZTE to evaluate the effect of equity incentive plan,further verify the rationality of the above analysis,at the same time,summarize the experiences and insufficiency of ZTE's equity incentive,in order to provide guidance for the enterprise equity incentive practice,and put forward improvement suggestions information disclosure norms of equity incentive.