Analysis Of The Effect Of Equity Incentive In China's Household Electrical Appliance Enterprises

Equity incentive is a reasonable and effective way to motivate employees,so that the motivated employees can also obtain shares of the company,and the motivated employees must assume or enjoy the risks and profits of the company at the same time.It can encourage the enterprise and the employees to achieve a win-win situation.When it comes to the home appliance industry,what we first think of is its fierce market competition.Entering the shopping malls,the products of major brands are dazzling.Now,the whole household electrical appliance industry has turned to the competition of the comprehensive strength of innovation and other aspects,not only the expansion of the scale.In order to retain the core personnel of the competent management and management,in order to maintain the efficient and stable research and development project group,the listed companies of the household electrical appliance industry in China began to launch the equity incentive plan as early as 2005.Therefore,based on the previous research results of domestic and foreign existing literature,this article uses the descriptive analysis method for the listed companies of the household appliance industry in China,and summarizes the equity incentives implemented by these 62 companies from the industry overview level,and carries out a brief analysis.In order to further explore the implementation effect of corporate equity incentive,this paper compares the Joyoung with Supor,and compares the company background,the motivation of equity incentive implementation and the design of the two equity incentive schemes.At the same time,the market reaction and the agency cost of Joyoung and the Supor equity incentive are also analyzed.Whether there are significant changes in the reduction,profitability and operational capability of the stock market,we conducted a comprehensive comparative analysis of the implementation effect of equity incentive.Finally,suggestions on the design of equity incentive elements are put forward from the aspects of enterprises,industry and national policies.It is found that the structure of the board of directors is different and the company's background is different,which will affect the final effect of the equity incentive.The stock right is concentrated in the first big shareholder,it is easy to have a speech and insider control;the private enterprise and the foreign enterprise have differences in the motivation of equity incentive,which will affect the stock right.The incentive plan is designed,and ultimately affects its implementation effect.Joyoung and Supor equity incentive have positive effects on enterprise profitability,but lack of long-term incentive.A series of elements related to the design of equity incentive scheme play a vital role in the quality of equity incentive,such as whether the set of equity incentive conditions is scientific or not.Reasonable and appropriate timing,the choice tendency of the motivated object and the significance of the set of unlocking conditions will also affect the effect of the enterprise's equity incentive implementation.