Analysis On The Incentive Effect Of Multi-period Restricted Stocks In Listed Companies

Equity incentives for listed companies have become more and more normalized.From the beginning of 2006 to the end of 2020,a total of 2,547 companies in the A-share and Hong Kong stock markets have issued 3,904 equity incentive plans.The equity incentives of listed companies show an accelerated upward trend as a whole.From the perspective of incentive methods,most companies in our country’s A-share market currently choose the restricted stock model,but actually,listed companies generally only launch one or two periods of incentive plans,and the time interval is long,making it difficult to form a long-term incentive mechanism,the continuous multiple equity incentives will help enterprises to realize the long-term effect of equity incentives.In view of this,this thesis mainly examines the long-term incentive effect of multiple restricted stock incentives on enterprises.This thesis firstly uses the 2015-2020 GEM non-ST listed companies as the research sample to examine the relationship between the implementation and non-implementation of restricted stock incentives and the company’s operating performance.Next,this thesis introduces the eight-phase equity incentives of HAND Enterprise Solutions Co.,Ltd,a typical company that implements restricted stock incentives on the Growth Enterprise Market,mainly including: the granting of shares for the eight stock incentives,the lock-in period and unlocking period of the incentive plan,the comparison of performance evaluation indicators and the unlocking of shares in each period,and on this basis,combined with the company’s annual report and development situation,to discuss the reasons for HAND’s implementation of equity incentives.This thesis focuses on the impact of multiple stock incentives on the performance of HAND,using the event study method to analyze the short-term market reaction of HAND corporation’s eight stock incentive announcements,and analyzes the company’s value creation by calculating the HAND’s EVA from 2011 to 2020,using the factor analysis method to obtain the factor scores and rankings of each indicator of HAND among 63 companies in the same industry from 2012 to 2020,and analyze the company’s financial status during the equity incentive period.Finally,this thesis examines the non-financial indicators of HAND corporation during multiple restricted stock incentive periods.Through empirical research,this thesis finds that companies that implement restricted stock incentives on the Chi Next perform better,and restricted stock incentives are positively correlated with corporate performance.The announcement of the equity incentive plan of the case company HAND has a positive impact on the market in the short term,but at the same time there is the possibility of information leakage.The multi-period restricted stock incentive implemented by HAND corporate has significantly improved the company’s operating performance,innovation output and the ranking of HAND’s factor scores in the selected sample companies.The company’s continuous incentives have a certain impact on shareholder value creation in the short term,but this effect is not lasting.There are also some problems in HAND’s multiple stock incentives,such as insufficient management incentives and unreasonable performance appraisal indicators.Based on the above conclusions,this thesis puts forward the following suggestions: when implementing restricted stock incentive plans,listed companies should set up a reasonable equity incentive plan,not only should pay attention to performance growth,but also should pay attention to market value management and value creation to shareholders,so as to better give full play to the role of equity incentives to achieve long-term stable development of the enterprise.