Research On The Timing Behavior Of Management In State-owned Enterprises’ Equity Incentives

For China’s listed companies,the date of the announcement of the draft equity incentive plan is an important point and the key to determining the exercise price of the stock options and the grant price of the restricted stock,so the announcement date of the draft equity incentive plan becomes a key point in examining management’s timing behavior.The management consciously chooses to launch the equity incentive plan when the company’s stock price is low,which can reduce the stock option exercise price or the restricted stock grant price,so that the incentive object can obtain higher incentive income.It is worth thinking that when the incentive target includes both executives and core technicians or the incentive target is only non-executives such as core technicians who do not have the right to promote the equity incentive plan,will there be timing behavior in equity incentives? Does the time behavior reflect the incentive function or the self-seeking welfare under the leadership of management? This paper takes the two-phase equity incentive plan launched by NAURA Technology Group Co.,Ltd.in 2018 and 2019 as an example to study the timing behavior of equity incentives.By examining the CAR before and after the announcement of the equity incentive draft,the existence of timing behavior in equity incentives was tested.On this basis,the manipulation of timing behavior of management was discussed,and the reason of the timing behavior of management was analyzed.Through case studies,we found that timing behaviors existed in the two phases of equity incentives of NAURA Technology Group Co.,Ltd.,and the manipulation methods are also very similar,but the reasons of timing behaviors in the two phases of equity incentives showed great differences.In the first phase of the equity incentive plan,all the incentive targets are non-executives such as core technical personnel.At this time,the management made a timing behaviors for the purpose of improving the level of employee incentives;in the second phase of equity incentives,timing behaviors becomes a way for executives to seize personal welfare.The internal governance and external supervision are not in place,and the exercise / grant price determination mechanism provides the possibility of timing behavior.Finally,suggestions are made on the formulation of policies related to equity incentives of state-owned enterprises,internal and external governance mechanisms of companies,and mechanisms for determining the price of equity incentives.It is hoped that it can provide reference for perfecting the formulation and implementation of the stateowned enterprise equity incentive plan.