A Case Study Of The Impact Of ZTE's Equity Incentive Plan On Its Corporate Value

Listed company equity incentive is to perfect the incentive system and a way to improve the value of the company,because of the equity incentive plan can solve the problem of corporate governance of the two rights separation,this method is a kind of span benefit-sharing incentives,through certain stake awarded management,making the interests of managers and corporate interests bind together,can effectively solve the conflict of interest between shareholders and managers,the management to a certain extent is more inclined to the interests of the owners position,effectively alleviate the negative effects of information asymmetry.On May 30,2020,the State-owned Assets Supervision and Administration Commission officially issued the "Notice on Printing and Distributing the "Guidelines for the Implementation of Equity Incentives by Central Enterprises Holding Listed Companies"on its official website.Equity incentives of listed companies provide systematic and comprehensive policy guidance and practical guidance,which is conducive to promoting the central enterprises to carry out more scientifically,efficiently and standardly,speeding up the establishment of a positive incentive mechanism covering corporate management backbone and core scientific research and technical personnel,and fully mobilizing various types The enthusiasm and creativity of personnel promote the realization of high-quality development of the enterprise.The exploration and practice of equity incentives in my country has gradually matured with the improvement of related systems and laws and regulations.Therefore,more companies have begun to accept,learn and implement equity incentive plans.Therefore,when the government is gradually paying more attention to equity incentives,it is of great significance to adopt equity incentive plans in compliance with policies to promote sustainable development and increase corporate value.The author conducts research on specific cases,selects ZTE,a leading company in the communications industry,as the research object,and introduces the basic situation of ZTE and the content of its three equity incentive plans.On this basis,the difference between the three equity incentive plans is carried out.Summarize and summarize,and then use economic value-added and financial,market value and core competitiveness indicators reflecting corporate value to observe changes in corporate value,further study the impact of equity incentives on corporate value,and through other aspects of corporate value Influence to supplement.Finally,this article summarizes all the previous analysis and arrives at the corresponding conclusion,that is,equity incentives have a certain positive impact on corporate value,but the impact is not long-lasting.Afterwards,the conclusions drawn are based on corporate and government policies.The side gives its own suggestions.The enterprise side needs to find the right time to implement the incentive plan and pay attention to how to achieve the long-term incentive purpose.The national level is mainly to provide complete protection.Finally,the author also has an outlook for future research.