Research On The Performance Of Equity Incentive Implementation In Yunnan Baiyao Under The Background Of Mixed Reform

In recent years,the Party and the state have repeatedly pointed out in meetings and documents the need to develop a mixed ownership economy,and the mixed ownership reform of state-owned enterprises has turned into a significant component of deepening the reform of state-owned enterprises.Equity incentives can help alleviate agency issues to some extent by endowing employees with shareholder status and closely linking them with the interests of the enterprise.It has been rapidly promoted and the effectiveness of incentives has gradually become prominent after the emergence of the equity incentive system in China.With the support and encouragement of national policies,a growing number of ownership enterprises are actively participating in the practice of equity incentives.Based on the understanding and analysis of domestic and foreign literature,this article selects Yunnan Baiyao as a case enterprise and evaluates the impact of equity incentive implementation on enterprise performance,taking into account the background of mixed reform in the enterprise.Firstly,by understanding the development process and business situation of Yunnan Baiyao,the progress of the two mixed ownership reforms,salary reform plans,and three equity incentive plans of Yunnan Baiyao is sorted out to understand the company’s corporate governance situation and analyze the rationality of its equity incentive plan design.Secondly,based on the industry background and internal environment of the enterprise,explore the reasons for formulating equity incentive plans,and summarize the different reasons for Yunnan Baiyao’s implementation of three equity incentive plans.Finally,this paper studies the impact of multiple equity incentives on the performance of Yunnan Baiyao,mainly including the following aspects:analyze short-term market reaction based on the event study method;Using financial indicators to analyze its long-term financial performance;Analyze the non-financial performance of Yunnan Baiyao based on its governance structure,agency costs,investment behavior,talent retention,and innovation investment performance.In addition,China Unicom will be used as a comparative enterprise to analyze the incentive measures implemented by the two companies and further draw research conclusions.This article draws the following conclusions through case studies:(1)The reform of mixed ownership provides a favorable environment for the smooth implementation of equity incentives;(2)The implementation of equity incentives by Yunnan Baiyao has improved its financial performance,and the short-term market response has been good after the announcement of the incentive plan;(3)Under the background of mixed reform,the implementation of multiple equity incentives by Yunnan Baiyao has had a positive impact on the improvement of non-financial performance of enterprises;(4)When carrying out mixed ownership reform,incorporating appropriate equity incentives will have a more significant reform effect.Mixed ownership enterprises should pay attention to the application of equity incentives when choosing mixed ownership reform methods.The research contribution of this article mainly lies in:(1)Based on the background of mixed reform,studying the motivation and performance of equity incentives implemented by Yunnan Baiyao,enriching the relevant research on equity incentives and performance;(2)Through case studies,a systematic analysis was conducted on the impact of implementing equity incentives in enterprises that have completed mixed reform,and suggestions for improvement were put forward,providing reference for other mixed reform enterprises.