Research On Equity Incentive System Of New Three Board Enterprises

The so-called equity incentive,is the company's equity distribution delegated to the company's important managers,so that they can further deepen the development and management of the company.In the management of the company to participate in the company's important matters in decision-making,so that they can better participate in the company's profit distribution.When equity is delegated to managers,more responsibility and more closely related business conditions will help them to serve the company for a long time.Equity incentive system contains a number of disciplines,such as management,economics,law and so on.Equity incentive first appeared in the field of economics.With the implementation of the supervision of equity incentive and the implementation of relevant laws,equity incentive research gradually expanded to the field of law.The field of economics is the earliest research field of equity incentive system,so the research results in this field also laid a certain theoretical foundation for the study of the field of law.Most of the researches on equity incentive in foreign countries are based on the empirical research and normative analysis of the equity incentive system from the economic point of view.The equity incentive system as the theoretical basis,the American scholar Theodore W Schultz and Becker put forward the theory of human capital property rights;the American economist Lewis Kell cable's two factor economic theory;Wilson,Ross,Spencer and Zack Hysen and other economists study the principal-agent theory;the other is the theory of corporate social responsibility and stakeholder theory.And the core and foundation of equity incentive system is exactly these theories.In January 16,2013,the new third board market is officially launched and National SME share transfer system mentioned in 14 th December of this same year,the State Council will determine the new third market expansion to the country,and publish relevant documents concerning the decision,"small and medium-sized enterprises share transfer system".National share transfer system installed as a major system for innovative,entrepreneurial,growth oriented small and micro enterprise development services,it not only after the approval of the State Council,and shall set up a national securities exchange,the new three Board Companies in the country that part of the transfer system of publicly listed shares of the company.The implementation of the company's equity incentive system at this stage is often stronger relative to the number of listed companies,however unlisted public company known as new three board business' s incentive mechanism was not too concerned.But most of these enterprises belong to technology intensive enterprises,and the introduction and inflow of their technical talents are related to the survival and long-term growth of enterprises.At the same time,because of its characteristics,the equity incentive of new three board company must have particularity.At present,because there is no specific,detailed rules,the new three board enterprise equity incentive plan often appear some special cases,in the A shares corresponding rule seems to be chaos.Since January 16,2013,China new third market is official opening,which has experienced 4 years of development,listing the number of entrepreneurs from the opening at the beginning of the "third board" 200 increase to the current more than11100.From the current development status and future trends,with the global perspective of the capital market,China's new three board market will undoubtedly develop into a unique capital market.In July of 2014,the "State Council on further promoting the healthy development of the capital market a number of opinions" in the stock transfer system to improve the proposal emphasized.It is also suggested that a more efficient and diversified investment and financing mechanism should be established in order to achieve a wider financing channel for small and medium enterprises in China so as to promote further adjustment of China's economic structure.On March 5,2017,Premier Keqiang Li proposed in the government work report,China's reform of the capitalist market to deepen,and actively develop the motherboard,the gem and the new board,and regulate the regional equity market.This is the fisrt time that Premier Li Keqiang mentioned the development of multi-level capital market in 5 consecutive years in the government work report,which is the first direct mention of the new three board.This passage of the prime minister,the main content lies in two aspects: one is the development of new three board market has risen to the national level and given full attention;two are mentioned in the new version three and gem,the new board and the gem is of equal importance.In 24 th of April,"Securities Law" revised draft submitted to the NPC Standing Committee for the second trial,the draft two reviewers will be places of the trading of securities in our country is divided into three levels,which is divided into three levels,the new board and the stock exchange established in accordance with the provisions of the State Council regional equity market.For a long time,the lack of the upper law of the new three board,the lack of regulatory basis,resulting in an awkward situation can not be recognized,is not conducive to the healthy development of the new three board,but also with the current rapid growth of the new three board scale disjointed.The Securities Act of two reviewers although the new board only made provisions in principle,but the market positioning of the new three board confirmed the law,provide the basis for the State Council or the law after the share transfer system,the introduction of relevant normative documents.Enterprises listed in the new three board,means that enterprises from the Private Companies into a public company,must face the company operating and financial information disclosure,standardized operating costs increased,large shareholders control weakened and other practical problems.But the capital market is bound to benefit more than disadvantages.Landing on the new three board is a great milestone in the growth process of SMEs,and is of far-reaching significance to the development of enterprises.As a new capital market,the new three board has brought a lot of market participation opportunities.Among them,small and medium-sized enterprises can get lower production costs based on this to achieve their own development.Investors are facing more investment opportunities: a large number of listed company have strong innovation strength and a large room for growth in the enterprise,investment opportunities are very rich;and because of the wide distribution of the listed company and enables enterprises to further optimize the structure of investment;listed company to apply for IPO or go to the gem listing to bring greater investment opportunities premium valuation differences in market stratification;between the different levels of market management and bring more investment opportunities.Compared with 2015,in 2016,the disclosure of equity incentive plan of the new three board company increased by 122.73%,which is the rapid growth.A significant increase in the number of new three board companies,which is based on equity incentive,largely depends on the rapid development of the new three board market itself.According to statistics,as of the end of 2015,the number of new board listed company is 5090,and by the end of 2016,listed company has reached 10162,an increase of 99.65% over the same period last year.In addition,since 2014 the attempt and exploration,the new board of equity incentive companies both supervision and guidance and practical operation are gradually perfect and mature,the equity incentive on the new board is no longer strange,the new board of Taiwan equity incentive provides better conditions to a certain extent.In 2016,the introduction of equity incentive plan accounted for 2.89% of the total number of new board listed company,an increase of 11.56% compared to 2015In 2016,294 new board of the company's provide the equity incentive plan,innovation company 65,accounting for 6.8% of the company innovation;basic levelcompany 229,accounting for 2.5% of the total number of the company's foundation,innovation company disclose the ratio of equity incentive program was significantly higher.The annual disclosure of equity incentive plan of the company,the transfer market making company 82,accounting for 5% of the market making the transfer of company;the agreement on the transfer of the company 212,accounting for 2.5% of the total number of Companies in the transfer agreement,the transfer market making company introduction ratio of equity incentive scheme in negotiating transfer companies have obvious advantages.At present for the non-listed company to implement the specific operation of equity incentive no more expressly,new three board listed company in the implementation of equity incentive programs,more is provided to have carried out the equity incentive of listed companies according to their own situation and flexible use.Given the stability of the company's equity considerations,the Commission requires enterprises to clear the subsequent implementation of the equity incentive plan before IPO can continue listing,otherwise it needs to stop the program can only be listed."The National SME share transfer system business rules(Trial)" clearly pointed out: "if it is in the application of listed company listed before the implementation of equity incentive or stock right is not over yet,is required in the prospectus mentioned and to disclose the relevant information." This article shows that the listed A shares with different companies,the new board intends to allow listed company proposed in the listing for future interests,namely new three board company can implement the equity incentive plan in listing approval before in the enterprise."The National SME share transfer system listed company information disclosure rules(Trial)" clearly pointed out: "the implementation of equity incentive mechanism of listed company according to relevant laws and regulations for the transfer of shares,and regularly disclosed to the outside world." The same as the listed companies,the implementation of the equity incentive plan is a major event of the company,must immediately fulfill the obligation of information disclosure.In recent years,although the liquidity of the stock market new three board has been greatly improved,but the contradiction between supply and demand imbalance may be further convex now.Therefore,it is suggested that the competent authorities should appropriately reduce the investor access threshold,further improve the market liquidity,and create an excellent external environment for equity incentive.I work in a new three board business,trying to start from the comparative analysis of equity incentive of listed companies and the new three board enterprises' equity incentive,discusses the implementation process of potential problems and corresponding countermeasures,and to meet the new board of equity incentive mechanism in the process of problems and gaps,summarized the corresponding strategies.