The Incentives Effect Of Restricted Stocks In Listed Companies

Under the modern corporate governance system,equity incentives,as an important incentive system,can promote the alignment of senior management and corporate goals,and improve the overall operating efficiency of the company.As a benchmarking company in the basic chemical industry,Hualu-Hengsheng has a leading management level in the industry,has significant equity incentive effects,and has a certain degree of representativeness.Studying the design,implementation and effect of its equity incentive plan is conducive to clarifying the elements of equity incentives,exploring what can be used for reference,and promoting the improvement and perfection of the equity incentive system,which has important practical significance.The thesis expounds the theoretical basis,model and effect evaluation method of equity incentives,examines the main business,company characteristics and incentive scheme elements of the case company Hualu-Hengsheng,analyzes the motivations and effects of the implementation of Hualu-Hengsheng’s equity incentives,and Based on the conclusions,suggestions for improvement and enlightenment are proposed,and follow-up topics are pointed out.The main points of the paper are:1.The policy orientation and development needs urged Hualu-Hengsheng to implement the equity incentive plan.The deepened reform of state-owned enterprises continues to be promoted,and chemical industry environmental protection constraints are becoming increasingly stringent,forcing the industry to reshuffle integration.Changes in the internal and external situations are both opportunities and challenges for Hualu-Hengsheng.The implementation of equity incentives has become an urgent need for Hualu-Hengsheng to seek rapid development.2.The overall design of Hualu-Hengsheng’s equity incentive plan is reasonable,and the details are slightly insufficient.The types of Hualu-Hengsheng equity incentive objects are in line with the company’s characteristics of relying on technology,the scope of incentives covers key personnel of the company,the validity period is in line with the industry average,and the period is reasonable.However,there are also problems such as too few incentives and single performance evaluation indicators,which need to be further improved.3.Hualu-Hengsheng’s equity incentive plan has achieved significant results.After the incentive plan was announced,the cumulative excess return during the event window period reached 4.25%,indicating that investors basically approved the incentive plan.During the evaluation period,the company reduced the agency cost increase space by increasing the dividend payment rate,and the revised management expense ratio representing agency cost decreased from 1.63% to 0.98%.At the same time,equity incentives have also improved the company’s human resources structure,promoted management stability,and boosted the company’s investment activity by increasing managerial enthusiasm.The above positive changes were finally transmitted to financial performance.From 2015 to 2018,Hualu-Hengsheng’s financial indicators have all improved significantly,and the performance far exceeds the industry average during the same period.4.The design of relevant policies for equity incentives should be further improved.State-owned enterprises should further strengthen equity incentives to cooperate with the deepening of state-owned enterprise reforms;the setting of unlocking conditions should disclose more detailed reasons to avoid self-interest behavior of directors and executives;personal assessment rules need to be stricter,and individual assessments must be kept in check.The thesis tries to analyze the incentive effect of Hualu-Hengsheng’s equity incentive plan from different angles,and enrich case studies of equity incentive practices of listed companies,with a view to providing some inspiration and reference for the subsequent implementation of equity incentives and the formulation of incentive systems.However,it is difficult to quantify the incentive effect directly,and the data is poor.The long-term performance change of the company is also affected by many factors.Therefore,the paper still needs to further improve the data support and exclusive analysis of the incentive effect.