Research On The Effectiveness Of Restricted Stock Incentives Of Listed Companies In China

Since 2005,the equity incentive has gradually evolved from a pilot to a mainstream way for Chinese listed companies to establish long-term incentives and improve modern corporate governance.More and more listed companies have begun to implement equity incentives.At present,stock options and restricted stocks are the most commonly used equity incentives for listed companies in China.Before 2012,The number of stock option incentive plans was greater than the number of restricted stock incentive plans.After 2012,listed companies are more focused on the choice of restricted stocks as equity incentives.At present,restrictive stock incentives have an absolute advantage in equity incentives.However,whether the implementation of the restricted stock approach is significant remains to be studied.This passage takes Sino Wealth Electronic as a case company,it is expected to provide reference for listed companies that intend to implement restricted stock by analyzing the restricted stock plan of Sino Wealth Electronic and the implementation effect of the plan.First of all,this passage expounds the background and significance of the case study,and summarizes the relevant literature and theory of the equity incentive.Secondly,it introduces the related concepts of restrictive stocks,incentive mechanism theory and performance evaluation methods.Next,based on the company profile of Sino Wealth Electronic and the incentives for implementing restricted stocks,it analyzes of the rationality of the restricted stock incentive plan From the three aspects of incentive object,incentive period and incentive conditions.Then,it analyzes the short-term and long-term effects of the restricted stock incentive plan of Sino Wealth Electronics though Event research,Economic value added and Financial analysis.Finally,this passage draws conclusions and conclusions through case studies:First,there are advantages and disadvantages in the design of Restricted Stock Incentive plan of Sino Wealth Electronic.The range of incentive targets and performance indicators are set reasonably.However,the number of performance indicators is small and the incentive period is short.Thus,the incentive effect of restricted stocks is weakened.Second,the restricted stock incentive plan of Sino Wealth Electronics promotes the stock price rise and significant growth in economic value added.It also improves the financial status of Sino Wealth Electronics.However,the incentive effect of long-term performance is insufficient.In addition,it plays a positive role in human resource management and innovation capability.Third,listed companies should complete restricted stock incentive plans and strengthen internal supervision to establish the long-term incentive mechanism through restricted stocks.And the government needs to improve policies and regulations related to restricted stocks to standardize the development of restricted stocks.