Research On The Implementation Effect Of Equity Incentive In Shanghai Jahwa

Equity incentive,as a long-term incentive mechanism that can solve the conflicts between principals and agents,has been widely used in European and American developed countries and has a positive impact on the development of companies.The concept of equity incentive was first introduced into China from the West in the early 1990 s.After a period of rectification and standardization,the guidance and restrictive system has been gradually improved and implemented.Equity incentives have now become mature and popular,and more and more listed companies use this method to motivate employees and promote the growth of their business performance.However,the actual effect of equity incentive is easily limited by negative internal and external factors of the company.In addition to the inherent conflicts of interests between shareholders and agents,the existing policy environment and supporting support are not mature,especially in the fully competitive daily chemical industry and other fields,where the factors influencing equity incentive are more complicated.Therefore,it is very important to study the scheme design and implementation effects of equity incentive plans for enterprise development.Taking Shanghai Jahwa as the research object,this thesis analyzes the motivation and mechanism of equity incentive implementation of Shanghai Jahwa by case analysis,literature research and comparative analysis,and further studies its implementation effect.This paper reviews some research literature and theoretical results on equity incentive at home and abroad,selects principal-agent theory,incentive theory and human capital theory as the basis from the existing research results of scholars,and briefly explains the theoretical core.This paper introduces the basic situation of Shanghai Jahwa,introduces its specific plan and behavior of implementing equity incentive plan in connection with relevant theories and implementation background,and analyzes the motivation and action mechanism of its incentive behavior.The method of case study is adopted to analyze the implementation effect of Shanghai Jahwa stock price incentive.Firstly,the market reaction is shown by calculating the excess return rate and stock price change.Secondly,by selecting appropriate financial indicators,it reflects the changes in the index data of the company’s profitability,operation capacity and development capacity before and after the implementation of the plan,and analyzes the implementation effect of the plan from the perspective of financial performance.Thirdly,through comparative analysis of agency cost,R&D innovation,human capital and other non-financial performance indicators,combined with the implementation of Shanghai Jahwa equity incentive,the implementation effect of equity incentive is evaluated in various aspects.Through the research,it is found that Shanghai Jahwa’s equity incentive can be adjusted continuously according to the company’s strategy,but there are still deficiencies in the design of the incentive scheme,and it fails to effectively promote its own financial performance.In this regard,the author puts forward targeted optimization suggestions,hoping that the case object can explore the deep reasons behind the failure of incentive plan unlocking,and achieve the goal of attracting talents through equity incentive,building excellent employee team,stimulating potential human capital momentum,and reducing staff turnover.Shanghai Jahwa incentive is characterized by diversified equity incentive methods and annual continuity of equity incentive implementation.If other companies want to design scientific,reasonable and appropriate evaluation systems,they can consider strategic positioning of enterprise management,set up the equity incentive plan based on its own development stage and industry environment factors and add assessment conditions other than financial indicators to the incentive scheme.Based on the characteristics and experience of Shanghai Jahwa equity incentive plan,it is expected to provide enlightenment with universal reference value to other enterprises implementing equity incentive and help deepen their own understanding of equity incentive.