Case Study On The Implementation Effect Of GQ Group’s Equity Encentive From The Perspective Of Life Cycle

For enterprises,the implementation of equity incentive is beneficial to reduce agency costs to some extent,stimulate the subjective initiative of incentive objects,help enterprises to stabilize the human capital structure,attract foreign talents,improve their performance and promote their good development.With the introduction of domestic equity incentive policies,more and more companies implement equity incentive plans,but the incentive effects are different.In fact,the implementation of equity incentive is inextricably linked with the life cycle of enterprises,and enterprises have different financial characteristics and strategic deployment at different stages of development.If a life cycle perspective can be introduced on the basis of equity incentive,it will help enterprises achieve good equity incentive effects.Therefore,It is of certain significance to study the equity incentive scheme suitable for the enterprise’s own development in combination with the life cycle,so on this basis,this paper takes the implementation effect of equity incentive of GQ Group as a case study.In this paper,literature research,case analysis and event research are used to study the effect of equity incentive implemented by GQ Group in combination with life cycle.First of all,this paper combs the relevant literature,defines the concepts of life cycle and equity incentive,and expounds the relevant theories and effect evaluation methods,which lays the foundation for the analysis and evaluation of the following.Secondly,it gives a brief introduction to GQ Group,and analyzes the implementation motivation of its equity incentive according to the basic situation of GQ Group itself,further determines its life cycle,and on this basis,expounds its equity incentive plan in combination with its life cycle.Then,according to different life cycle stages,the incentive effect of GQ Group is analyzed from financial performance,non-financial performance and long-term and short-term market reactions.Combined with the characteristics of GQ Group,profitability,operation ability,growth ability and solvency are selected as the selection indicators of financial performance,while market share,human capital structure and innovation and research and development ability are selected as the non-financial performance indicators.In the aspect of market reaction,the short-term market reaction is analyzed by the excess rate of return and accumulated excess rate of return obtained through the event research method,and the long-term market reaction is analyzed by the stock price trend in the life cycle.The research shows that,from the perspective of life cycle,GQ Group has chosen a more suitable equity incentive model according to its development goals,and adjusted the scope of equity incentive in a timely manner,which is worth learning.At the same time,it draws inspiration that enterprises need to improve the assessment indicators according to their own development stages,set the exercise conditions in multiple dimensions to avoid unreasonable exercise,and pay attention to diversification of incentive methods.The research of this paper has a positive effect on the overall scientific design of the incentive scheme for controlling shares of the group,promoting its smooth implementation,giving full play to the incentive effect,and also providing some reference for the design and implementation of the equity incentive scheme for other enterprises in the same industry.