Evaluation And Optimization Of Equity Incentives From The Perspective Of Investment Efficiency

With the rapid development of the modern economy,the normalization of the separation between the owner and the operator of the company has caused a series of agency problems.Equity incentives have stronged the interests of owners and operators by giving equity to company executives and core employees.It can alleviate agency problems and promote company development.The investment behavior of a company is one of the most important decisions of the management,which affects the company's profit growth and development.The investment efficiency is an index that used to evaluate the effectiveness of investment behavior.At present,China's equity incentives have a history of more than 10 years and the number of listed companies adopting this method has grown rapidly,and both increased by more than 400 companies in 2017 and 2018.Most studies on evaluating incentive effects are from financial performance.Equity incentive usually affects the company's investment situation and then affects financial performance so that evaluating the effect of equity incentive from the perspective of investment efficiency can find its impact on management's investment effect quickly.In addition,it is more conducive to the optimization of equity incentive programs,so as to give full play to the effects of equity incentives.This article conducts an in-depth analysis and research on the evaluation of the effectiveness of the case company's use of equity incentives and the optimization scheme from the perspective of investment efficiency.Start with the introduction,introduce the background and significance of the article,and then comb the relevant research on investment efficiency and incentives by domestic and foreign scholars.Immediately afterwards,the main concepts and related theories are elaborated in the second chapter.Based on the theoretical analysis of equity incentives and investment efficiency,the impact mechanism between the two is clarified.At the same time,the equity incentive effect under the perspective of investment efficiency is establishedbased on previous research evaluation system.evaluating the effectiveness of equity incentives from the perspective of investment efficiency.Then,the fourth chapter is the main part of the article that first introduces the basic situation of Mianshi Investment company and the overview of equity incentives and analyzes the motivation of equity incentives.Next,the investment efficiency evaluation system is used to measure the incentive effect of Mianshi Investment,and analyzed the reasons why the investment efficiency is not improved after the incentive and the incentive effect is not ideal.The last part is the final part.Chapter 5 proposes strategies for optimizing the equity incentive plan and improving investment efficiency at the two levels of the company and the equity incentive plan based on the problems and causes analysis of the previous equity incentive plan.The research conclusions and the research outlook are put forward.This article take Mianshi Investment as the research object,and takes equity incentives and investment efficiency as the main research content.The research finds that when the actual controller obtains a large percentage of incentives and has absolute power over the company's management,the designed equity incentives will have welfare effects more than incentive effects,thereby harming the interests of the company.Mianshi Investment's equity incentive plan has the problems of short incentive period,loose exercise conditions and irrational proportion of grantees,which inhibits the promotion of equity incentives on investment volume,operating income growth,and investment benefits,and encourages investment efficiency.In the context of the domestic economic downturn,improving investment efficiency is the main direction for the transformation of listed companies in the future.The article evaluates and optimizes equity incentives from the perspective of investment efficiency,and supplements the index system for evaluating the effects of equity incentives.Equity incentives can be provided for similar plans and can provide a certain reference for companies with similar plans for equity incentives.