Research On The Impact Of Executive Stock Option Incentive On Enterprise Performance

As a long-term incentive,equity incentives are widely used in the industry,which can help enterprises retain talents and solve a series of problems caused by principal-agent.Under the current economic situation,the competition among enterprises is particularly fierce,and talent has become the key point for enterprises to compete for,so enterprises must speed up the improvement of the enterprise incentive mechanism.For my country,in terms of the equity incentive system,the promotion time of this system is later than that of Western countries.However,due to the withdrawal of relevant safeguard measures such as the share-trading reform policy,this system has been quickly promoted in many listed companies.It can be seen that equity incentives also make outstanding contributions to improving corporate governance structure and improving corporate operating performance.Midea Group is a well-known domestic enterprise,and its perfect equity incentives are praised by the industry.This paper comprehensively summarizes the current domestic and foreign research literature on equity incentives,analyzes the feasibility of this paper,and determines the Midea Group as the research sample.Combined with a variety of research methods,it analyzes its equity incentives,and comprehensively lists them in 2017～2019.During the period,related schemes such as stock options and restricted stocks were collected.Based on this,through the literature and data method,we collected relevant information,comprehensively compared the advantages of research and event research,collected and evaluated the existing equity incentive plans of Midea Group,and analyzed Midea’s implementation of equity incentives.How it affects its own financial and short-and long-term performance.It can be seen from the research results that,in the short term,within 10 days before and after the announcement of the implementation of the equity incentive plan,although the company’s performance has improved to a certain extent,the degree of improvement is not large.Combined with the analysis of various financial data from 2008 to 2019,it can be seen that the profitability and operation level of the company have improved significantly.With the help of the comparative research method,the results obtained are:the performance level of Midea Group has been significantly improved in the industry.On this basis,the advantages of Midea’s equity incentives and related issues are further analyzed.This article is targeted for the group.Put forward relevant countermeasures and suggestions in terms of equity incentives and assessment conditions.