The Effects Of Executive Equity Incentive:Based On Retailing Industry Corporations

The paper adopts case analysis as the research method and focuses on the changes in the performance of Friendship&Apollo after the implementation of equity incentives to analyze the effectiveness of equity incentives.The paper selects the industry average data as the comparison group,uses the financial index analysis method to,and compares the changes in the performance of the Friendship&Apollo and the comparison group after the implementation of equity incentives.The research shows that the equity incentive plan of Friendship&Apollo has indeed played a positive role in the first two years,but then the promotion effect has begun to weaken,and performance has even declined after the assessment period.In order to ensure the better effect of equity incentives,the paper analyzes the equity incentive plan of Friendship&Apollo from the perspectives of performance assessment indicators,equity incentive terms and equity incentive targets,and proposes corresponding amendments.This paper is divided into five chapters as followed:The first chapter is the introduction,introduces the research background and significance of the paper,reviews the development status of equity incentive at home and abroad,expounds research ideas,research framework,research content and research methods,finally illustrates the innovation of the paper.The second chapter elaborates the related content of equity incentive.First of all,it introduces the definition and specific types of equity incentive.Then it introduces the two-power separation theory,principal-agent theory and two-factor theory.The third chapter reviews the specific development status of equity incentives in China's listed companies,and expounds the three stages of initial exploration,growth,and vigorous development of equity incentives for listed companies in China.Statistics and introduction of listed companies in China in 2006-2017 The number of companies implementing equity incentives,industry distribution,and incentives for the subject matter.The fourth chapter is the specific analysis part of the paper.First,it introduced the development history of the Friendship&Apollo and the implementation of the equity incentive plan.Then it conducted a specific analysis of the company' s financial indicators,stock price changes,and performance assessment indicators.Summarized the advantages and disadvantages of the Friendship&Apollo equity incentive plan.In the fifth chapter,after analyzing the effect of the equity incentive of Friendship&Apollo,the author draws a corresponding conclusion and gives suggestions for improvement.