Case Study On Equity Incentive Effect Of Kexin Electromechanical Company

The equity incentive mechanism is an effective method to improve the principal-agent contradiction that has been skillfully used in developed countries.China introduced the mechanism in 2006 and has been exploring the past.However,due to the late start,the capital structure is different from that of foreign companies.The designed equity incentive plan is not in line with the actual situation of the company,which makes many companies’ equity incentives fail..After the official release of the Measures for the Administration of Equity Incentives for Listed Companies in 2016,with the improvement of various related systems and policies,the adjustment of the national population structure led to the adjustment of production capacity,the re-allocation of resources,and the advent of the talent dividend and knowledge economy era.Whether it is a listed company or a small and medium-sized board company,both the old-fashioned state-owned enterprises and the emerging Internet companies focus on the implementation of equity incentives.Under this circumstance,the evaluation of the effect of equity incentive implementation has become the most concerned issue for managers and investors.The implementation effect of the equity incentive plan is not only affected by the internal operating environment of the company,but also by the macro environment.At present,China’s evaluation method for the effect of equity incentives is relatively simple,mainly based on the analysis of the company’s financial indicators.The conclusions drawn in this way are biased and are not conducive to the effective implementation of equity incentive schemes.Under this circumstance,this paper introduces the four dimensions of the Balanced Scorecard as the assessment dimension of the implementation effect of the equity incentive scheme,and constructs an equity incentive effect evaluation system by giving different weights to the assessment indicators.The financial indicators and non-financial indicators are combined for comprehensive evaluation,in order to obtain a more scientific and reasonable conclusion.The article is divided into six parts: The first part is the introduction.It mainly discusses the research background and research significance,clarifies the research purpose,research content and research methods,explains the innovation points and limitations of this paper,and summarizes the research framework of this paper.The second part is a literature review.Firstly,it summarizes the related research on the correlation of company performance and the selection of evaluation indicators in domestic and foreign equity incentives,and briefly reviews and comments the literature review content.The third part is the concept definition and theoretical basis.Firstly,the basic concept of equity incentive is introduced,the theoretical basis based on it is expounded,and several main modes of equity incentives in China are briefly described,which lays a foundation for the subsequent research of the article.The fourth part is the case introduction.Firstly,the basic situation of Kexin Electromechanical Co.,Ltd.will be introduced,and then the equity incentive plan of Kexin Electromechanical will be displayed,and the process of implementation will be sorted out.The fifth part is the case study.Firstly,the principles followed by the establishment of the equity incentive evaluation system based on the balanced scorecard and the analytic hierarchy process are established.Then the selection of the indicators of the equity incentive evaluation system,the determination of the weights,the design of the scoring scheme,and the credit incentives of Kexin Electromechanical The comprehensive score of the program is finally evaluated based on the results of the evaluation.The sixth part is conclusions and recommendations.Based on the four dimensions of the Balanced Scorecard,the research on the case of Kexin Electromechanical Equity Incentives is summarized,and then the recommendations for the design of equity incentive schemes in relevant industries are given.Through research,it is found that,overall,Kexin Electromechanical’s equity incentive plan has certain positive effects on the company’s performance improvement,but it is not particularly significant.In order to provide some reference value for the design of equity schemes for other enterprises based on individual case studies,it is necessary to give attention to the company’s development strategy,multi-level setting assessment indicators,and different evaluation indicators in different periods.