Research On Management Opportunistic Timing Behavior Of BL Real Estate’s Equity Incentive

Due to the separation of two rights in the continuous development of enterprises,there is an agency problem between management and shareholders.In order to solve the contradiction between the two and make the management work harder,in addition to the basic salary and performance,some companies began to establish equity incentive system.Equity incentive can reduce the contradiction between shareholders and management,reduce the short-sighted behavior of management,and make the company develop better with a longer-term vision.However,according to the results of equity incentive implemented by Listed Companies in recent years,the management of some listed companies will implement opportunistic behavior in order to obtain more capital gains,which will greatly reduce the incentive effect.Therefore,the research on the opportunistic timing behavior of management of equity incentive of listed companies is of great significance in theory and practice.Taking BL real estate as an example,this paper finds that the corporate governance of BL real estate is not perfect.Due to the holding of SASAC,the management has too much power,and there is the possibility of self-determined salary.This paper adopts the event research method and analyzes the image trend of car.It is found that the management of BL real estate has made an opportunistic choice when publishing the equity incentive draft in the awarding link of equity incentive.The time when they publish the incentive draft is at the lowest point of the company’s stock price,In this way,the exercise price determined by the management in the granting link can reach the lowest value,so as to obtain the maximum capital gain,that is,the opportunistic timing behavior is implemented.With the help of quarterly earnings information disclosure,BL real estate management deliberately postponed the release of information that is helpful to the company’s reputation and can increase investor confidence,and released the company’s negative information or information that reduces investor confidence in advance.In addition,timing earnings management was carried out,and the net profit of the enterprise was reduced in the first quarter before the publication of the draft,making the enterprise performance worse than expected.However,in the quarter after the publication of the draft,the company raised the profit upward.The combination of various methods will eventually achieve the purpose of reducing the stock price before the publication of the draft,so as to reduce the exercise price.The above timing behavior of the management leads to the rise of BL real estate’s performance in the short term,but in the long run,it shows a downward trend,and its performance is not as good as that of the benchmarking enterprises in the same industry.Therefore,from a comprehensive analysis,the opportunistic timing behavior implemented by BL real estate management in equity incentive reduces the incentive effect,reduces the company’s profits in the long run,and damages the interests of investors.Finally,this paper puts forward suggestions from three aspects of incentive scheme design,hoping to provide a reference for China’s listed companies to reduce the opportunistic timing behavior of management in the implementation of equity incentive plan.