Research On The Market Value Management Effect Of Equity Incentive In State-owned Listed Companies

Equity incentive solves the principal-agent problem by giving part of the shareholders' equity to senior executives and combining the interests of senior executives and shareholders.After the reform of non-tradable shares,a new trend of management with Chinese characteristics was put forward: market value management,which is a strategic management method to maximize the company's value by using reasonable means.The introduction of market value management reflects the change of the management philosophy of listed companies in China,that is,the operation goal changes from profit maximization to value maximization.Based on the needs of market value management,the enterprise can demonstrate to the external investors that the enterprise managers are optimistic about the prospect of the company by means of equity incentive.It is necessary to study the equity incentive of state-owned listed companies from the perspective of market value management.This article statistics,the current situation of state-owned listed companies adopt equity incentive and event study analysis of the communications industry adopting the market effect of equity incentive,in addition to ZTE as a case,on the one hand based on event study analysis of ZTE market reaction of equity incentive,on the other hand evaluation model based on value management to analyze its equity incentive effect on the performance and market value,finally it is concluded that the main conclusion is: the equity incentive of ZTE,not only to enhance the company's profit ability,improve the company's business performance,but also transmit a good signal in the capital markets,for capital market to understand and reflect the company's intrinsic value,so the equity incentive to let companies have more market premium,create value for the enterprise,so as to promote enterprise value management.And sums up the state-owned listed company equity incentive is incentive scheme is not scientific and the performance index is not reasonable,value management as an important index in the management performance,but in the heart of the equity incentive plan combined accounting index and market index both at the same time for performance.