| Equity incentive mechanism is a management method often used by listed companies in their management.It first appeared in the 1950 s and was used to regulate the conflicts between corporate managers and shareholders due to issues such as entrusted agency,and to mobilize the work of business managers The role of enthusiasm promotes the rapid development of enterprises.In 2006,China promulgated the "Measures for the Administration of Equity Incentives of Listed Companies(Implementation)",which marked the beginning of China’s initial exploration of equity incentive mechanisms.However,due to the late start-up time in China,the lack of relevant experience,and the lack of a sound capital market,to a large extent hindered the reform of the equity incentive mechanism of listed companies.Therefore,this paper uses a combination of theory and case research methods to conduct a more comprehensive analysis of the equity incentive mechanism,with a view to providing relevant suggestions for the improvement of equity incentives.Based on the relevant principles of the equity incentive mechanism,this article selects Company B as the object of investigation and conducts detailed analysis and research on the four-phase equity incentive plan implemented by it.First,comprehensively analyze the four equity incentive programs of Company B and explore its purpose;second,establish indicators that evaluate the effectiveness of the equity incentive mechanism of Company B as:financial performance,market performance,and non-financial performance;Discuss the problems that arise during the implementation of the mechanism and put forward suggestions for improvement.The detailed analysis and research of the four-phase equity incentive mechanism implemented by the enterprise is the innovation of this article.At the same time,the effect of the enterprise’s equity incentive system from different perspectives is evaluated and analyzed.Through analysis,it was found that after the implementation of the equityincentive plan,the company’s innovation ability,staff size and quality have been greatly improved,the company’s financial performance has also been significantly improved,and its profitability and growth ability have been greatly improved.There was no significant improvement in debt-servicing capacity and operating capacity.When analyzing the performance of Company B’s stock price,the research method adopted was the event analysis method.The study found that after the implementation of equity incentives,the stock price fluctuated significantly.It shows that the implementation of equity incentives has brought a positive impact on improving the performance of Company B,but there are still some negative impacts.The main significance of the research in this paper: through systematic research and objective evaluation of the implementation of the company ’s equity incentive related plan,the company ’s problems and deficiencies in the implementation of the equity incentive mechanism program are obtained,and further optimization suggestions are proposed to further promote the company ’s equity The reform of the mechanism provides a useful reference,and also helps other listed companies to better learn lessons and explore equity incentives. |
