Study On The Implementing Effect And Its Influential Factors Of Equity Incentive Of Ningbo Yunsheng

One of core problem in modern corporate governance is the principal-agent problem,and stock option incentive is an important tool to solve this problem.In recent years,the number of companies issuing the stock option incentive announcement has risen gradually,and in rare earth industry,the companies' passion for implementation of stock option inventive is also very high,but the specific implementation effect of many companies are not so desirable,and the researches towards the effect of stock option inventive of companies in rare earth industry are very limited.Given this,in this paper,by taking Ningbo Yunsheng as an example,the analysis made for the implementation effect and influence factor of stock option incentive was of great significance.Based on the theoretical introduction and analysis of principal-agent theory,information asymmetry theory and human capital theory,in this paper,the plan combining normative research and case study was adopted,and the stock option incentive plan implemented by Ningbo Yunsheng since 2015 was taken as the research object to study its equity incentive effect and influencing factors.In this paper,analysis was made respectively from stock price,financial index,human resources etc.,and it was discovered that Ningbo Yunsheng's stock option incentive plan was of significant incentive effect in the early stage,but the effect persistence was insufficient,therefore,the overall performance was poor.On this basis,in this paper,from the analysis of internal and external environment factor as well as stock option incentive plan design factors,it was discovered that factors such as stability of corporate management structure,external industry environment,setting of key performance indicators,selection of incentive object was of great influence on final effect of Ningbo Yunsheng's stock option incentive.Finally,starting from the research conclusion of effect analysis and influence factor of Ningbo Yunsheng's stock option incentive,this paper suggested that in order to reach the maximum incentive effect of stock option incentive,enterprises should fully analyze internal and external environment and formulate scientific stock option incentive plan before implementation of stock option incentive plan,and mai ntain stable corporate management structure during implementation.Through the research of this paper,it is hoped that this paper could provide reference for Ningbo Yunsheng and other rare-earth permanent magnet enterprises that intend to implement stock option incentives.