Research On Motivation Of Equity Incentive Of Listed Companies Based On Life Cycle Perspective

With the continuous improvement and maturity of China's equity incentive system,more and more enterprises prefer to use the equity incentive mechanism to alleviate the principal-agent problem of enterprises.Equity incentive plays a good role in boosting the talent reserve and value improvement of enterprises.Throughout the domestic listed companies,many enterprises usually trigger a strong market reaction when they announce their equity incentive plans,making them quickly become the focus of the market.Moreover,many enterprises implement equity incentive plans for many times in the whole life cycle,showing different effects in different modes.However,different effects often reflect different design motivations of enterprises.Yili,established at the end of last century as an old-style dairy company,is now a leader in the food manufacturing industry.The company's three equity incentives in different periods have brought strong market reaction and become the focus of research.Based on the above practical phenomena,this paper studies the design motivation of listed companies' equity incentive from the perspective of life cycle,tries to clarify the impact of life cycle on the design motivation of listed companies' equity incentive,and explores the differences between the design motivation of companies' equity incentive in different life cycles.For this research problem,the existing literature is involved in both the enterprise life cycle theory and the design motivation and implementation effect of equity incentive.In the study of enterprise life cycle theory,the existing research focuses on exploring the financial characteristics,business model and development strategy of enterprises in different periods.At the same time,the theoretical research is extended to the application of life cycle to financial decision-making and future development planning of enterprises.For the study of the equity incentive to use empirical research methods to analyze more incentive mode,intensity of implementation and implementation effect,for the research of the motives of equity incentive design is relatively mature,distinguish between the set effective motivation and interests of the two kinds of views,however,few studies from the perspective of life cycle of the dynamic design of equity incentive motivation of literature.Based on this,starting from the heterogeneous characteristics of enterprise life cycle,this paper explores the design motivation of equity incentive through external information such as incentive plan and implementation effect,and matches the motivation with the characteristics of life cycle to demonstrate that the design motivation of equity incentive is different in different life cycles.Through the case study,the expected research results are as follows :(1)to clarify the design motivation of equity incentive in the different cycles of initial stage,growth stage,maturity stage and decline stage;(2)different implementation effects will reflect the design motivation;(3)clarify how the life cycle influences the design motivation.After the complete analysis and demonstration,this paper will put forward the specific design motivation of equity incentive of listed companies in the perspective of each life cycle.In theory,it plays the role of enriching research in related fields,and establishes the connection between life cycle and design motivation of equity incentive by means of case argumentation.In practice,it provides reasonable Suggestions for enterprises to choose and implement equity incentive,and theoretical reference for market investors to make rational investment analysis and planning.