Research On The Effectiveness Of Restricted Stock Of State-owned Enterprises

Since the implementation of the “Management Measures for Equity Incentives of Listed Companies(Trial)” in 2006,equity incentive in China began to develop rapidly.In order to prevent the loss of state-owned assets,the implementation of equity incentive in state-owned enterprises is subject to strict policy constraints.Therefore,compared with private enterprises,the development of equity incentive in state-owned enterprises is relatively slow.With the deepening reform of state-owned enterprises,more and more state-owned enterprises try to promote their own development through equity incentive.At the same time,as restricted stock is the mainstream equity incentive model in the current market,many state-owned enterprises pay more attention to the implementation of restricted stock incentive plans.However,the incentive effect of restricted stock incentive plans is questionable due to the small number of state-owned enterprises implementing.This research chooses two consecutive restricted stock incentive plans implemented by Accelink Technologies,a state-owned listed company in the telecommunication equipment industry,as the research object.By analyzing the elements design and incentive effect of the two plans,it tries to explore whether the limited stock incentive plans implemented by state-owned enterprises are effective and how the design elements can promote their effectiveness.Firstly,the domestic and foreign literature,basic theory and mechanism of restrictive stocks are reviewed.Secondly,it introduces the general situation of the implementation of restricted stock incentive plan in state-owned listed enterprises in China.Thirdly,the paper expounds the general situation of Accelink Technologies,analyzes the motivation for the implementation of the plan from both internal and external perspectives,and based on the specific content and implementation process of the two plans,analyzes the rationality of the two incentive plans for restricted stock of Accelink Technologies from the perspective of elements.Then,the effectiveness of the incentive plan for restricted stock of Accelink Technologies is analyzed from both short-term and long-term aspects.The short-term market effect is analyzed by the event study method,and the long-term financial performance is analyzed by the financial index method and the economic added value method.Meanwhile,other non-financial influences are analyzed to improve the long-term effect study.Through the above analysis,the following conclusions can be drawn: First,under the strict policy stipulation and adapting to the enterprise's own situation,the design of the two-term stock incentive plan of Accelink Technologies is rigorous and reasonable,especially in the selection of performance evaluation indicators and validity period.However,there are also some inadequate numerical designs of the indicators in the plan.The reasonable element design of the plan can improve the effectiveness of the plan,but imperfect design may affect incentives to a certain extent.Secondly,due to the continuous improvement of equity incentive policies and the deepening reform of state-owned enterprises,two restricted stock incentive plans of Accelink Technologies both have a significant positive effect on short-term market performance,and due to the successful experience of the first plan,the second positive effect is more significant than the first.Third,in the long run,the two restricted stock plans have promoted the continuous improvement of Accelink Technologies' financial indicators,economic added value,research and development capacity,talent retention and attraction level,and investment efficiency.Therefore,the two restricted stock incentive plans have a positive effect on the long-term effect.Through the above research conclusion,this research believes that in order to improve the incentive effect of restrictive stock incentive plans for state-owned enterprises,it is not only necessary for the government to constantly improve the relevant laws and regulations,but also for the state-owned enterprises to continuously improve their internal governance level,establish a monitoring mechanism,improve the elements of restricted stock incentive plans according to the actual situation,and try to implement hybrid equity incentive model.Through combination of other modes,the incentive effect of restricted stock plans can be improved.