A Study On The Motivation And Effect Of Supor’s Shareholding Incentive

With the increasing application,equity incentives have become a core issue in corporate governance.In the context of the separation of the two rights,equity incentives give the company employees a part of the equity,so that the interests of the principal and the agent tend to be consistent,thereby reducing the company’s agency costs.At present,the construction of China’s equity incentive system and the practice of listed companies are at a very critical stage.There is an urgent need to conduct in-depth research on the incentive effect of equity incentives,and to reexamine the design of equity incentive contracts,corporate governance mechanisms,capital market efficiency and the improvement of the institutional environment Degree and rationality.Based on this,this article adopts a case study approach,with a view to point to face,to provide a valuable reference for the construction of my country’s equity incentive system and the practice of listed companies.Specifically,this article first combs the relevant literature at home and abroad,summarizes the relevant theories of equity incentives,clarifies the relevant concepts,and then gives a general introduction to the status quo of equity incentives of listed companies in my country from the perspective of institutional changes and company number distribution statistics.Next,take Zhejiang Supor Co.,Ltd.as an example to describe in detail the implementation process and incentive content of the company’s four equity incentives,and further summarize the characteristics of the company’s implementation of equity incentives from multiple perspectives in the design of equity incentive contracts.Secondly,combining the relevant theories to analyze the motivations of Supor’s implementation of equity incentives.Since Supor’s stock sources of equity incentives are relatively rare,this paper combines signal transmission theory,free cash flow hypothesis and corporate strategic planning to further discuss the motivations for the selection of stock sources.Finally,in terms of long-term incentive effects,use ROE,EVA,free cash flow and other evaluation indicators to analyze the case company’s financial,non-financial performance and company value changes,and compare the case company with companies in the same industry that use general stock sources to implement equity incentives.,So as to compare the difference between the effects of equity incentives of the two stock sources.In terms of short-term incentive effects,the market model is used to calculate the excess return rate of the company’s stocks before and after the equity incentive plan is issued through the event research method,and the market response generated by the equity incentive is evaluated.The main conclusions drawn in this article are as follows:(1)Supor uses a special repurchase as a stock source for equity incentives,and its performance indicators have the problem of being too low to meet the standard,and the restricted stock grant price is too low,which exposes potential Of management’s opportunistic behavior to maximize the benefits of equity incentives.(2)The implementation of Supor’s equity incentives is to ease the principal-agent contradiction,attract and retain talent;the choice of stock source is because the company’s value is underestimated,reducing free cash flow agency costs and avoiding dilution of large shareholders’ equity.(3)Overall,equity incentives can significantly improve Supor’s financial performance,and equity incentives that use repurchases as a source of stock have advantages in improving certain financial performance.At the same time,equity incentives also significantly reduce agency costs,curb the company’s staff turnover,successfully attract external talents,and increase the value added of the company’s economy.The release of the equity incentive plan prompts the company to attract investors’ attention in the stock market in the short term,obtain excess returns,and significantly enhance the company’s value.