Research On The Effect And Mechanism Of Equity Incentive Under The Background Of Mixed Reform

Compared to Western countries such as the United States,the introduction of equity incentives in our country is still in its infancy.Most state enterprises in our country have a single capital structure,an imperfect ownership mechanism,and a dysfunctional accountability mechanism.In the process of implementing equity incentives,most state-owned enterprises have revealed such shortcomings as distrust of employees and loss of assets,so that the effect of equity incentives has not been fully developed.However,at this stage,in order to further stimulate equity incentives in SOEs,the central government has continuously issued a series of relevant policies and regulations,which have caused a wave of equity incentives in SOEs with mixed reform.This is because the successful implementation of equity incentives can not only motivate employees,improve corporate innovation and corporate governance,but also improve the business performance of enterprises.That is why many SOEs that are about to undertake blended reform have begun to examine equity incentives.However,the number of hybrid SOEs that have successfully implemented equity incentives is relatively small because of the operational and complex issues of hybrid reform and equity incentives for SOEs.In addition,there is a lack of case studies to support the theoretical study of equity incentives in hybrid reform in China.Therefore,academia and hybrid SOEs are concerned about whether equity incentives can achieve the expected goal,and the study of equity incentives for hybrid SOEs is valuable.In this paper,the effect of equity incentive and its mechanism are discussed in the context of China Unicom’s hybrid reform and its implementation of equity incentive.The paper firstly analyses the specific motivations for the implementation of equity incentives under the hybrid reform;secondly,it analyses the effects of equity incentives in terms of market response and financial performance;and thirdly,it analyses the changes in financial performance brought about by equity incentives in terms of three mechanisms of action.The mechanism of the change in working capital efficiency is analysed in terms of the change in equity structure and the change in agency costs brought about by the implementation of equity incentives.The analysis concludes that Secondly,equity incentives have achieved the desired effect through three mechanisms,helping enterprises to improve corporate governance efficiency and reduce agency costs,enhance staff stability,increase R&D output and improve innovation capability,which ultimately contributed to the improvement of overall enterprise performance;Thirdly,the implementation of equity incentive has enhanced corporate value and financial performance.Combined with the analysis and conclusion,this paper puts forward several insights from the following aspects:seizing the opportunity of the mixed reform to actively implement equity incentives;choosing the appropriate equity incentive targets;and improving the relevant policies for implementing equity incentives under the mixed reform of state-owned enterprises.enterprises.