A Study On The Effectiveness Of The Implementation Of Multi-Phase Equity Incentives In China Automotive Research Under The Background Of Mixed Reform

A crucial and significant part of China’s economy,the state-owned sector aids in the development and stabilization of the social economy.The reform of mixed ownership has successfully fostered enterprise transformation and upgrading as well as altered the ownership structure of the state-owned economy as the reform of state-owned companies has progressed.In order to encourage state-owned businesses to implement equity incentive schemes to draw talent and enhance their corporate capabilities,the SASAC has published equity incentive recommendations for state-owned businesses.Nonetheless,China’s equity incentive began relatively later than it did in the West.China’s state-owned businesses typically struggle with issues including broad power abuse,a lack of diversity in performance evaluation metrics,and equity incentive systems that not only failed to serve as incentives but also created issues like high staff turnover.Businesses that use scientific equity incentive schemes can alter the equity structure and enhance corporate governance,among other things.The effective implementation of equity incentive plans can also enhance employees’ sense of ownership and productivity,as well as businesses’ capacity for innovation and ability to generate profits.The wide range of equity and the difficulties of execution are obstacles to state-owned firms implementing equity incentives in the context of mixed transformation.There aren’t many state-owned businesses that use multi-period equity incentives in the context of mixed reform,and there isn’t much experience to draw on.The majority of domestic and international academics’ research on multi-period equity incentive plans is currently concentrated on theoretical and empirical study,with individual incentive plans receiving very little attention.Thus,it is important to investigate how to determine whether an enterprise’s equity incentive strategy has had the desired impact.The listed state-owned company "China Auto Research" is chosen as the case study object in this essay.China Auto Research implemented the first phase of the equity incentive program in 2017 and three more phases in the following years against the backdrop of mixed reform.At the same time,China Auto Research is typical and representative as a top company in the listed A-share auto service sector.This paper begins with an analysis of pertinent literature and theoretical research on equity incentives,followed by a thorough examination of equity incentive policies and the state of equity incentives in state-owned businesses.Finally,it introduces the China Auto Research Group company and examines the factors that led to the implementation of equity incentives as well as the three-phase equity incentive plan.Second,it examines the impact of China Auto Research’s equity incentive scheme from the viewpoints of financial,non-financial,and economic value addition.Lastly,the study conclusions and recommendations of this work are derived from the data analysis,and future prospects are provided.By its study,this essay comes to the following conclusions: The introduction of multi-period equity incentives in state-owned businesses has been encouraged by several reforms,including: 1.The reform of mixed ownership;2.The equity incentive plan;3.The equity incentive plan has raised the bar for staff education.The following information is uncovered: 3.Continue implementing the multi-period equity incentive plan.1.Establish varied performance evaluation standards.2.Enhance the terms of equity incentive exercise.