Research On The Reasons And Effects Of Changes In Equity Incentive Model Of GEM Listed Companies

The concept of equity incentives first appeared in the United States in the 1950 s.With years of development,it has been widely used in countries with more developed global economies.China's equity incentive system started relatively late compared with Western countries.After the completion of the share-trading reform in 2005,a series of policies were introduced,especially the Measures for the Administration of Equity Incentives of Listed Companies issued by the China Securities Regulatory Commission in August 2016.The formal implementation has laid the foundation for the rapid development of equity incentives in China.By the end of 2017,a total of 396 listed companies had implemented equity incentive plans,accounting for 11.42% of the total number of listed companies.Among them,62 companies listed on the GEM listed in the implementation of the equity incentive plan,the 69 incentives for equity incentives were changed,and the number of companies with incentive models changed accounted for 12.42% of the total number of equity incentive companies listed on the GEM.Changes are constantly being used in listed companies in China.Therefore,what is the reason for the listed company to change the equity incentive model,and what effect will it have on changing the equity incentive model? This is the focus of this paper.This paper firstly defines the “change of equity incentive model”,and then summarizes and summarizes the relevant theories and literature review,and then analyzes the current situation of equity incentives for China's GEM,SME board and main board A-shares,and focuses on the equity of GEM.The current situation of the change of incentive mode is analyzed,and then the case analysis of EGOVA is carried out to analyze the reasons and effects of the change of the equity incentive mode of EGOVA.Finally,the summary suggestions are made on this basis.Through the analysis of the content of EGOVA 's equity incentive plan,the author finds that the second-party restricted stock equity incentive plan of EGOVA is more perfect than the first-time stock option equity incentive plan.And from the aspects of improving corporate governance efficiency,accelerating strategic layout,strengthening talent team training,retaining core talents,accelerating R&D and innovation,and promoting long-term development of enterprises,the reasons for the change of EGOVA incentive mode are analyzed.Then,from the four aspects of market performance,financial performance solvency,profitability,operational capability and development capability,non-financial performance R&D intensity,core technical personnel and patents,the paper draws EGOVA change.The incentive model effectively achieved the effect of equity incentives and promoted the company's development.In order to make the equity incentives play the expected results,combined with the results of the case study of EGOVA,this paper puts forward three suggestions: one is to improve the capitalist market supervision mechanism;the second is to change the single incentive model;the third is to improve the equity incentive scheme design.