Research On The Equity Incentive Scheme And Its Implementation Effect Under Mi Group's Dual-class Share Structure

In recent years,more and more enterprises choose to list in the United States in the form of Dual-Class Share Structure,which makes a large number of domestic high-quality enterprises lose.In order to adapt to the development of the stock market,Hong Kong allowed enterprises to list in the form of Dual-Class Share Structure for the first time in April 2018.On July 9,2018,Xiaomi Corporation(hereinafter referred to as MI group)chose to list in Hong Kong in the form of Dual-Class Share Structure,becoming the first dual equity enterprise to list in Hong Kong.Before and after the listing,MI group has formulated and implemented equity incentive plan to promote the long-term development of the company.At the same time,MI group has chosen to adopt Dual-Class Share Structure for listing.Under this structure,the equity incentive plan of MI group has also made some adjustments,which also has an impact on its implementation effect.This paper takes the Dual-Class Share Structure as the starting point,first analyzes the financing process and ownership structure of MI group,and makes clear the voting rights of shareholders before and after the IPO of MI group,as well as the founder's control over the company.Secondly,the paper compares the equity incentive scheme and its implementation before and after the IPO of MI group,and deeply explores the differences caused by Dual-Class Share Structure on the equity incentive scheme before and after the IPO of MI group.Finally,we use EVA performance evaluation and event study to test the equity incentive plan after the IPO of MI group,analyze whether the equity incentive plan after the IPO creates value for shareholders and short-term abnormal market income,and analyze the market share and executive liquidity,so as to clarify the impact of Dual-Class Share Structure on the equity incentive plan and its implementation effect.This paper analyzes the equity incentive policies and effects before and after the initial public offering of MI group by EVA performance analysis and event study.The following conclusions are drawn:(1)under the Dual-Class Share Structure,equity incentive policy is conducive to stimulate the enthusiasm of the company's employees and promote the managers of the company to create value for the enterprise better.(2)Using EVA performance analysis,it is found that at present,after MI group has implemented Dual-Class Share Structure listing,the equity incentive policy formulated promotes the development of enterprise economy.(3)The event study shows that the equity incentive policy after MI group's initial public offering has no significant effect on the creation of market value for the enterprise in the short term.(4)Since the dual equity structure of MI group has been listed,the market share has remained stable,and more talents have been attracted by the equity incentive plan of MI group.