Research On The Equity Incentive Scheme Of Hisense Electric

Equity incentive is an important tool of long-term incentive,it can effectively solve the principal-agent problem between the principal and the agent,avoid the short-term behavior of the company's operators,and make it pay more attention to the long-term healthy development of the enterprise.In Europe and the United States and other developed countries by a variety of enterprises widely adopted and has been tested in the market,the effect is good.By contrast,the development of equity incentive of listed companies in China lags behind.But in recent years more and more companies began to implement equity incentive in the beginning,after 2006,China formally introduced in western developed countries increasingly perfect management equity incentive system,using many companies issued draft equity incentive plan,equity incentive has entered the critical period of development,study the equity incentive for plan of the enterprise implement,it has some practical significance.In this article,hisense electric is selected as the research object.Firstly,Domestic and foreign literature review on equity incentive and the research content and method of this paper are described.Then,the main forms and theoretical basis of equity incentive are introduced.Then,on the basis of theoretical case analysis,the implementation situation of the equity incentive scheme of hisense electric is introduced,including the general situation of hisense electric,the background of the implementation of the equity incentive scheme,and the implementation situation.Finally,the data of hisense electric from 2008 to 2016 are selected to analyze the implementation effect of the equity incentive of hisense electric from four aspects: operating performance,the ability of debt paying and development,stock price,discuss the main problems existing in the process of the equity incentive of hisense electric,and propose targeted improvement Suggestions.At present,China is in a critical period of reform of economic system.As the forerunner and main force of China's reform,state-owned enterprises are bound to arouse our attention.The research results of this paper are helpful for hisense electric and other companies to understand the problems existing in the implementation of equity incentive schemes and achieve effective avoidance in the future.And put forward improvement suggestions to consolidate and improve the implementation effect of equity incentive.