Study On The Effect Of Equity Incentive In Iflytek Co.,Ltd

China Securities Regulatory Commission(CSRC)promulgated the "Measures for the Management of Equity Incentives of Listed Companies(Trial Implementation)on December 31,2005,and revised and supplemented in succession years.On July 13,2016,it officially issued the"Measures for the Management of Equity Incentives of Listed Companies".China has gradually established a relatively perfect system of equity incentives,which provides legal protection for the implementation of equity incentives of listed companies.Since 2005,A-share listed companies have begun to use equity incentives to motivate outstanding qualified reasons,to ensure the stability of the company’s personnel and core competitiveness.In this context,it is of great practical significance to explore the theoretical research and practice of equity incentive.In this paper,we use the case analysis method to make a detailed analysis of the company’s equity incentive scheme and its implementation,including incentive mode,exercise price,exercise conditions and incentive objects.At the same time,it analyses the motivation of the implementation of equity incentive,the impact of the window period of announcement of equity incentive scheme on the company’s stock price,and the impact on the company’s financial performance after the implementation of equity incentive.It also compares and analyses the implementation of equity incentive in the same industry.Through the empirical study on the overall performance of equity incentive in listed companies of software and information technology services,this paper verifies that the performance of enterprises with equity incentive is significantly higher than that of enterprises without equity incentive through three indicators: return on net assets,earnings per share and Tobin Q.At the same time,there is a significant positive correlation between the intensity of equity incentive and the performance of enterprises.The higher the intensity of equity incentive,the higher the performance level of enterprises will be.This paper points out the shortcomings of the incentive scheme design and puts forward corresponding improvement suggestions when analyzing the equity incentive scheme and implementation effect of Iflytek Co.,Ltd and other companies in the same industry.It provides reference and reference for other domestic listed companies to implement equity incentive.