Study On The Implementation Effect Of Jianmin Group’s Repurchase Restricted Stock Incentive

The stock incentive plan is an incentive system that motivates the operators to obtain certain equity shares of the company,so that they can enjoy the economic benefits and rights brought by the equity shares and participate in the corporate decision making as shareholders,thus motivating them to serve the long-term development of the company.The scientific and reasonable design of the plan is the key factor to achieve the best incentive effect.When designing the stock incentive plan,the way of using the directed share issuance and the way of buying back shares directly affects the effect of the stock incentive plan.Taking Jianmin Group as the research object,we compare the relevant financial indicators of Jianmin Group with the industry average,and observe the differences of non-financial indicators during the implementation of the incentive plan of Jianmin Group,and comprehensively analyze the influence of the implementation of the repurchase type restricted stock incentive plan.In addition,we also compared with the companies in the industry that implemented the restricted stock incentive plan through targeted issuance and did not take the incentive plan,and further discussed whether the buyback restricted stock incentive plan of Jianmin Group could achieve the implementation effect more effectively.By comparing the financial indicators of Jianmin Group and its industry peers through comparative analysis,we understand the changes of Jianmin Group’s financial indicators after the implementation of the buyback restricted stock incentive plan.The event study method is also used to study the changes of short-term market performance of the enterprise before and after the announcement date of the draft equity incentive,and analyze the changes of non-financial indicators of the buyback restricted stock incentive plan of Jianmin Group in terms of market performance,human resources,R&D capability and agency cost,and comprehensively analyze the implementation effect of its incentive plan.It also uses the Wall score method to compare Jianmin Group horizontally with companies in the same industry that implement restricted stock incentive plans with different share sources,and further analyzes the effect of the buyback incentive plan from the financial perspective.The conclusions of the study are as follows:(1)From the financial indexes,Jianmin Group’s execution of the buyback restricted stock incentive plan has enhanced its profitability and growth ability,but it did not play a positive impact on its solvency.Although it can improve the operating capacity in the short term,the long-term effect is not obvious;(2)From the perspective of non-financial indicators,the announcement of Jianmin Group incentive plan has brought positive news to the market,which is conducive to the improvement of short-term market performance.The execution of buyback restricted stock incentive plan can also improve the R & D innovation ability of enterprises,make reasonable adjustment of the company’s personnel structure and effectively improve the agency cost of enterprises;(3)From the comparative analysis of the same industry,it can be found that the incentive plan of Jianmin Group improved the financial index score of the enterprise,and it can be concluded from the financial perspective that the effect of the repurchase restricted stock incentive plan is better than that of the enterprises that implemented the restricted stock incentive plan through the directed issue and did not implement the incentive plan.In general,the incentive plan effectively improved the business condition of the enterprise.