Analysis On The Incentive Effect Of Restricted Stock In JiuYang

The scale of the enterprise gradually enlarges the emergence of the separation of the two rights,and the specialization of enterprises becomes more and more clear.However,the interests of shareholders and managers are sometimes inconsistent and information asymmetry exists,which may bring bad consequences to corporate governance.In order to restrain the contradiction of principal-agent,equity incentive is an effective way to improve the management efficiency of the company.The equity incentive system can bind the interests of owners and managers,giving managers a chance to gain a portion of the remaining equity.In addition,from the point of view of compensation mechanism,compared with the general cash salary bonus,with a long cycle incentive equity incentive system,because of its performance appraisal standards,set up long-term and can effectively overcome the disadvantages of principal-agent problems,constraints,and motivate managers consider the long-term interests of the enterprise,reduce the short-sighted behaviour management.Jiuyang is one of the best in China's kitchen appliance industry.It has disclosed the equity incentive plan twice,but the results show a great difference.This article from the jinan-based company stock equity incentive to executives investment behavior,agency costs,staff stability,market reaction and company operating conditions such as angles,this paper found that 2014 of equity incentive produced certain positive effect,but has yet to reach the expected incentive effect.The changes of the growth rate of intangible assets and the growth rate of fixed assets indicate that equity incentive has not significantly improved the short-sighted investment behavior of company executives.But the implementation of equity incentive significantly reduces the agency cost of Jiuyang shares and plays an important role in attracting and stabilizing employees.In addition,Jiuyang share equity incentive has achieved a very positive market reaction in the future.In the long run,although the implementation of equity incentive does not significantly improve the company's profitability and solvency,its implementation still significantly improves the company's development capacity and operational capability.The reason is that the positive effect of the equity incentive scheme has not been maximized because of some shortcomings in the design of performance appraisal index,unlocking condition and equity incentive ratio.The performance appraisal target,the unlocking condition and the equity incentive ratio need to be further improved.This article suggested that sun shares from select diversified performance appraisal index,the design is more reasonable to unlock conditions and expand the scale of the motivation of improving equity incentive plan,in order to better play to the positive effects of equity incentive.