Research On The Impact Of Multi-phase Equity Incentive Of Chinese Listed Companies

With the rapid development of capital market and the continuous improvement of the modern corporate governance system,equity incentive as the important measures to improve enterprise legal person governance structure,is widely thought to be able to put the interests of the individual and corporate interests together,is to retain the core talented person’s "golden handcuffs" and the "engine" to boost the growth of the company’s performance.At the end of 2005,China issued the Management Method of Stock Rights Incentive of Listed Companies(Trial),which marks the establishment of equity incentive system in China.With the steady development of the equity incentive system,more and more of the listed company take equity incentive as one of the ways in which the company to establish long-term incentive system.Many companies continue to implement multi-period equity incentive plan after the launch of the first incentive plan.In this context,the implementation of multi-period equity incentive will improve company performance or not,it is worth to pay close attention.In here,the case study method is used to study the multi-period implementation of equity incentive in H company.Firstly,this paper expounds the influence of equity incentive and the factors affecting the effect of equity incentive.On the basis of discussing the meaning of equity incentive,equity incentive model,equity incentive evaluation method and related research theory.The overall situation of the company,summarizes the company’s ownership,regional and industry distribution of the implements the equity incentive,and analyzes the current status of the implements the equity incentive from incentive tools,source of shares and other incentive factors.Then in-depth study of the performance of the multi-period implementation of equity incentive takes in H company.First,it initially compared the operating conditions of other GEM listed companies in the industry that did not implement equity incentives for multiple periods.Later,it compared horizontally the entrepreneurial value from the perspective of economic value added.The board refers to the implementation effect of the company’s equity incentives,and analyzes the beneficial effects of the multiple-period implementation of distribution incentives on H company through the event research method.Through the research,the following conclusions are drawn: The incentive effect of the multi-phase equity incentive plan implemented by H company is remarkable.From the perspective of internal financial indicators,the company has maintained strong profitability since the implementation of equity incentives in 2011,and the company’s overall financial position is good during the implementation of the equity incentive plan.From the market reaction after the implementation of equity incentive in H company,during the public disclosure window of the eight draft equity incentive plans,the remaining five-phase equity incentive plan has a significant positive impact on the company’s share price in the short term,and the market is more optimistic about The equity incentive plan of H company,except that the market reaction is not obvious in the first,sixth and seventh issues.Company H’s long-term share price is subject to market fluctuations,but the overall trend is relatively stable after the volatility.It is suggested that H company can choose a more diversified equity incentive model when implementing the equity incentive plan in the future,and in addition to setting profitability index as the exercise goal according to its own development strategy,it can also set up a more flexible and diverse,scientific and reasonable incentive scheme suitable for enterprise development.