| Under the modern enterprise system,equity incentive is an effective means to solve the agency contradictions between owners and managers.In order to improve corporate performance,increase employee’s motivation and creativity,and improve corporate governance,the company has standardized fair rewards,to help enterprises achieve stable long-term development goals.Align the interests of upper management with those of shareholders.The rise in the price of a company’s stock is based on the rise in the value of the company itself.On June 20,2021,GREE ELECTRIC APPLIANCES announced the first phase of the employee stock ownership plan(draft).Two trading days after the announcement,GREE’s share price fell continuously,hitting a new low for the year,and the company’s market value once fell below 300 billion yuan.At the same time as this capital market reaction,the media and the public have widely disputed GREE’s ESOP.Based on the theoretical basis of equity incentives,this paper lists the equity incentive models currently,which is used by listed enterprise.Summarizes the process of developing equity incentives for listed enterprise in China,and summarizes the research on the motivational listed and implementation effects of equity incentives domestic and foreign scientists.This paper takes GREE as a research case,and elaborates the incentive mechanism of GREE’s employee stock ownership plan.It makes a horizontal comparison with the equity incentive measures of MIDEA GROUP,a competitor in the same industry,and vertical comparison with GREE’s past equity incentive methods.As a corporate governance event,the equity incentive plan represents that the enterprise hopes to use incentives for employees to achieve the growth of the enterprise’s performance and the improvement of value.The capital market reaction before and after the equity incentive event represents investors’ expectations for the enterprise’s stock price and future performance.An attitude that affects the trading behavior of market investors.The main part analyzes the motivation of GREE’s equity incentive implementation from both positive and negative aspects,and then assumes the market reaction of GREE based on the event search method,observes the reaction of capital market after the announcement of the employee share ownership plan,and examines the implementation of the incentive actions.The impact of the enterprise’s business performance and the assessment of the impact of the implementation of the stock stimulus event,to help investors make more accurate investment decisions.This paper put forward four suggestions for the implementation of equity incentives for listed companies:First,scientifically select the incentive model;second,set the incentive objects fairly;third,reasonably adjust the exercise conditions;fourth,effectively manage the company’s public opinion. |
