Case Analysis Of Joyoung Share Stock Incentives

Thanks to the establishment of a modern enterprise management system and the reform of China's equity allocation system,more and more companies in China are aware of that as a distribution method,equity incentive can improve corporate governance structure,enhance company performance,and strengthen competitiveness.However,based on the fact that China's market economy system still needs to be improved and the equity incentive mechanism is not fully matured,whether the implementation of stock incentive plan by Chinese companies can produce the best incentive effect is constrained by many factors.At present,the number of companies that implement equity incentives in China is increasing,and it is expected that more companies will implement equity incentives in the future.This also reflects that the development of equity incentives in China is very large.However,the corresponding supporting system is not yet perfect and equity incentive scheme does not meet the company's status quo.As a result,the equity incentive plans of some companies in China have not achieved the best results,and they have even abandoned their scheme.Therefore,the research on equity incentives has become an important issue in China.Joyoung as a member of the household appliance industry with fierce market competition,suffered great competition from the industry.Midea,Galanz,and other home appliance predators entered the soybean milk machine market,To a certain extent,it inhibited the growth of production capacity and sales volume of Jiuyang..As a result,it is more in need of excellent human capital and greater potential in tapping the potential value of human capital,so as to enhance its own technology,sales,and publicity capabilities,as well as increase market competitiveness and expand market share.Therefore,this article chooses the two equity incentive plans of Joyoung Group as a case for analysis.This article mainly uses the literature research method and the case analysis method for analysis and research.First briefly introduces the two equity incentives of Joyoung,and analyzes the motivation behind the implementation of equity incentives for Joyoung from the perspective of internal and external environment;after that,basic financial indicators analysis,EVA comprehensive performance analysis,events study are used,and from the perspective of curbing the short-term behavior of managers,reduce agency costs and attracting talents,this paper analyzes the two stock incentive plans of Jiuyang Group.The research model will be used to determine the effectiveness of Joyoung's stock incentives and its short-term market response;and finally,from the aspects of implementation background,incentive targets,exercise prices and exercise conditions to analyzed,obtained the reasons for the revocation of the stock equity incentive plan in 2011 and the elements for successful implementation in 2014.It is proposed that the implementation of stock incentives for Joyoung Stock will provide relevant recommendations from two perspectives:formulating a reasonable equity incentive plan and improving the performance evaluation system.I hope to provide some recommendations for other companies who are planning to implement equity incentive.