Research On The Motivation And Effect Of Equity Incentive In Guangdong Group

Economic development promotes the expansion of the scale of enterprises.Limited by personal energy and ability,enterprise owners will separate their management rights from professional managers,and they are likely to conflict because they seek different interests.This conflict is called "principal-agent" relationship by scholars.In order to coordinate the agency conflict caused by the separation of the two rights,equity incentive plan came into being.Equity incentive plan can not only coordinate the interests of stakeholders,but also attract talents and reduce agency costs.As equity incentive plans can bring many benefits to enterprises,more and more enterprises are implementing equity incentive plans under the active market competition.As a participant in the market economy,Guangdong Group began to implement equity incentive plan for the first time in 2015 in order to improve its competitiveness.Why could have played a positive role in the implementation of the equity incentive plan in Guangdong Group,but the plan did not reach the exercise standard and terminated in advance? This thesis takes Guangdong Group as the research object and studies the equity incentive plan implemented in 2015 and 2016.Based on the relevant research on equity incentive plan by domestic and foreign scholars,this thesis adopts case study method,event study method and other methods to study the implementation motivation and effect of Equity incentive plan of Guangdong Group.First of all,the author read a large number of relevant literature,defined the concepts related to equity incentive and corporate performance,and summarized the corporate governance theory,principal-agent theory and other related theories.Secondly,the case of equity incentive plan of Guangdong Group is introduced in detail.Next,through financial performance analysis,non-financial performance analysis and market reaction analysis,the specific effect of the implementation of equity incentive plan of Guangdong Group is studied,and the conclusion is that the implementation effect is not good.Then,from the incentive plan to find the specific reasons for the failure of the implementation of equity incentive plan of Guangdong Group,and put forward corresponding solutions to the problems existing in the incentive plan.Finally,summarize and forecast the overall situation of equity incentive plan of Guangdong Group.Through research,this thesis concludes that although equity incentive plan can coordinate the interests of enterprise stakeholders and improve enterprise competitiveness to a certain extent,a good implementation effect cannot be separated from a good plan.In the implementation of equity incentive plan,enterprises should formulate an incentive plan suitable for their own enterprises according to the characteristics of the industry they belong to and combined with the internal and external macro and micro environment.Through the research of this thesis,it is expected to help Guangdong Group to solve practical problems,and at the same time,it is expected to provide some reference for China’s listed companies in the implementation of equity incentive plan.