Research On Considerations And Effects Of Non-ferrous Metals Industry Equity Incentive Model

China is in the background of the further promotion of the State-owned Enterprises’ reform by the central government.A series of relevant policies issued by the government which have released signals to further promoting the Mixed Qwnership Reform of State-owned Enterprises and carrying out equity incentive.As an important part of state-owned enterprises,the pace of the Mixed Qwnership Reform of Stateowned Enterprises is accelerating under the promotion of policies,which ushers in a new round of development opportunities for equity incentives.More and more central enterprises begin to actively explore the equity incentive model.Therefore,more and more companies have begun to actively explore equity incentive models.As an important basic raw material industry and pillar industry in China,the non-ferrous metal industry plays an important role in the national economic development and has always been the focus of our country.However,problems such as weak independent innovation ability and unreasonable industrial structure of non-ferrous metal enterprises hinder the development of the industry.Equity incentive can effectively improve the investment of senior executives in scientific research,stimulate the enthusiasm of scientific and technological personnel,promote industrial optimization and upgrading,and alleviate the problems faced by the non-ferrous metal industry to a certain extent.It has not only been favored by non-ferrous metal enterprises,but also has been the focus of scholars’ research.However,most scholars’ research on equity incentive focuses on the real estate and pharmaceutical industries.And there is little research on the non-ferrous metal industry.Specifically,there is almost no comparative research on the effect of different equity incentive models on non-ferrous metal enterprises in the form of case studies.Through case analysis,this paper explores the equity incentive mode and implementation scheme suitable for non-ferrous metal enterprises,in order to provide reference for other enterprises in the same industry.Based on principal-agent theory,human capital theory,and incentive theory,this article selects Steel Research Cisri-Gaona,a central enterprise in the non-ferrous metal industry,as the research object,and analyzes the incentive effects of two different equity incentive modes implemented by enterprises successively,in order to explore the equity incentive model and implementation plan suitable for the enterprise’s own development.Firstly,it analyzes the two different incentive models and program design characteristics of its implementation,and makes a comparative study on the market effect,financial effect and value creation effect of equity incentive under different incentive modes.The conclusions are as follows: First,after the implementation of the restricted stock model in 2019,the excess return rate and cumulative excess return rate of the enterprise’s stock price are higher than the stock option model implemented in2012;Second,both the stock option model and the restricted stock model can improve the financial capability of a company,but the restricted stock model has a better incentive effect;Third,both the stock option model and the restricted stock model can enhance the value creation ability of a company,Similarly,restricted stock model can improve the value more significantly.Secondly,the influence paths of the different incentive effects of the two different incentive modes of Cisri-Gaona are deeply discussed,and the reasons for the differences are excavated.Finally,aiming at the problems existing in the two equity incentives of Cisri-Gaona,we put forward targeted suggestions respectively,hoping to provide reference for Cisri-Gaona and other companies in the same industry to implement equity incentives.