Research On The Equity Incentive Effect Of Listed Companies In Chinese GEM Software And Information Technology Service Industry

In the nearly 40 years of reform and opening up,China has undergone tremendous changes in all aspects.Accelerating the construction of a manufacturing powerhouse and deep integration of the Internet,big data,artificial intelligence and the real economy are the expectations and demands of the Party's Nineteenth Congress report on China's manufacturing industry.In order to achieve this important strategic goal,building a strong software and information technology service industry is a necessary choice for China.Due to the importance and irreplaceability of human capital in the industry,whether they can retain key management talents and core technical talents and allow them to exert their due value is to determine whether software and information technology service companies can be competitive in the keen competition.Therefore,high-quality human resources will be the focus of competition in the industry.The modern company system is based on the separation of ownership and management rights,which is also the root cause of agency problems.Shareholders are capital suppliers,and they do not directly participate in the management of the company.This task is assigned to the professional manager.Because the goals of them are not consistent,the latter may make a violation of the former's interests.Equity incentive is a great way to reduce the cost of agency.Equity incentive,as the name implies,is an employee incentive method that grants professional managers and employees share of the company's equity.Because stock price fluctuations will directly affect the amount of income that the incentive object receives from the incentive plan,the benefits of the manager binds with the interests of shareholders.Thereby the equity incentive can avoid managers from making behaviors that impair the interests of shareholders in their daily business activities,which is conducive to the long-term healthy development of the enterprise.The main research method adopted in this paper is the case study method,which studies the equity incentive effect of Chinese GEM software and information technology service listed companies.Firstly,this article sorts out and summarizes the relevant data,and obtains the basic characteristics and existing problems of implementing equity incentive plans for listed companies in the GEM software and information technology services industry.Then,the ariticle selects Xiamen Meiya Pico Information Co.,Ltd.(hereafter referred to as Meiya Pico)as a case company,researching on the effect of the equity incentive plan launched by the company in 2012.This article starts with the short-term performance and long-term performance of Meiya Pico.The article,on the one hand,compares the case company horizontally with companies in the same industry;on the other hand,compares it longitudinally with the company's financial status over the years.Through analysis,it is found that during the implementation of the equity incentive plan,the performance of Meiya Pico has improved,but after the completion of the plan,the performance has declined.This shows that the equity incentive scheme has short-term incentive effect,but this effect is not consistent.For the reasons,I believe that there are several problems in the equity incentive plan,which are the unlocking index is too single,the restrictive stock price is low,the unlocking ratio is unreasonable,the fund pressure on the incentive target is large,the incentive plan is announced at the end of the year,the stocks are deffered,etc.In response to these problems,I puts forward suggestions for the listed company's stock incentive plan,which are choosing appropriate time to announce the incentive plan,the implementation of stock incentive plan according to the regulations,the establishment of multiple performance evaluation indicators,reasonable pricing the granted stock,the appropriate arrangement of the unlocking ratio,and reasonable extension incentives validity,improving relevant laws and regulations,etc.I firmly believe that in the future capital market will become more rational and the equity incentive system will be better.The equity incentive plan can truly contribute to the long-term development of listed companies.