The Motivation And Effect Analysis Of Jiuyang Stock Company

Equity incentives began in the 1850 s and were thoroughly studied and widely practiced in Western countries at the end of the 1980 s.In recent years,China has gradually introduced this management mechanism and vigorously promoted it.However,due to the limited experience in the implementation of equity incentives in China,many companies that implement equity incentives fail to set up a reasonable plan based on their own conditions.Not only cannot they produce incentive effects,but they also hinder the development of the company.As the leader of China's small home appliance industry,Jiuyang Stock Company has been in a mature stage of overall development.Due to the occupation of the main business market,Jiuyang Stock Company has issued equity incentives twice before and after to help the company transition through difficult times,but the incentive effect is not satisfactory.Jiuyang's two unsuccessful equity incentive plans are worthy of our in-depth analysis.This article uses a special research method to analyze the motivation and effect of equity incentives of Jiuyang Stock Company.First,the research background,significance and related literatures of domestic and foreign stocks are combed,and the related theoretical concepts of stock incentives are introduced.Secondly,introduce the specific situation of Jiuyang Stock Company's two implementations of equity incentives in 2011 and 2014 and analyze their motivations,clarify the purpose of equity incentives,and pave the way for the subsequent analysis of incentive effects.Thirdly,from various aspects including financial and non-financial indicators,the effect of the equity incentive implementation of Jiuyang Stock Company and the problems in the program are analyzed.There are many unreasonable points.Finally,according to the incentive case of Jiuyang Stock Company,the article believes that equity incentives should pay attention to the timing of program implementation and ensure the timeliness of the incentive program,select reasonable indicators while excluding internal and external environmental risks,and combine the program with talent positions.Reflect on the shortcomings of Jiuyang Stock Company's equity incentive case,and provide experience and improvement methods.This article analyzes the motivation and effect of Jiuyang Stock Company's equity incentives,and makes suggestions on the irrationality of the plan,providing theoretical guidance for Jiuyang Stock Company's future successful implementation of equity incentives.At the same time,it has promoted the improvement and improvement of equity incentive plans,and provided valuable experience for other enterprises that intend to implement equity incentives in China.