Research On Equity Incentive Of Small And Medium - Sized Listed Companies In China

Along with economic development, SMEs(Small and Medium-sized Enterprises) have become promote rapid economic development and social progress of important backbone. Since 2005, after further promote equity division reform and "Equity Incentive Measures for the Administration of Listed Companies"(Trial) released, many companies began to try to implement equity incentive. In this paper, according to public statistics, in 2014, there are 189 A-share listed companies to disclose the equity incentive plan, from 2006 to 2014, A-share cumulative total of 776 listed companies in the implementation of the incentive, all A-share listed companies in the total number of accounting for 28.9%. Nowadays the rapid economic development, enterprise mechanism has been improved, as an equity incentive has been linked with shareholder value. The equity incentive system is very important and can be sustained long-term incentives, effectively solve the principal business management and agent problems under ownership separation. It really helps stimulate the vitality of employees and avoid the following risks of short-term behaviors. SMEs in China are active practitioners of equity incentive, the mechanism has been considered a long-term promotion program of SMEs listed company for healthy and sustainable development of the ideal incentive system.In this paper, on the basis of equity incentive theory, combining the research and cases study, it has been analyzed the influencing factors of equity incentive mechanism. When design the equity incentive plan, we suggest the SMEs should seriously consider the internal and external environment, own industry status and characters, as well as the difference of actual effect to apply the equity incentive mechanism. Because the good and bad effects of the implementation process will be directly and eventually related to the operation of all aspects of listed companies expected results, such as performance and manpower capital. The correct equity incentive plan for SMEs listed companies, it must be selected, designed and operated under the rationality and effectiveness, which is decided by its own actual situation and internal and external environment and other factors.From the following five parts, the equity incentive of SMEs listed companies was researched and described on the paper. The first part is the introduction: the research background and significance, domestic and foreign research review, research content and methods was explained. The second part: in general terms of equity incentive of SMEs listed companies in China was discussed. Including equity incentive conceptual, theoretical basis, models, contracts and other factors, and analyze the status of implementation and features. The third part is equity incentive effect and influence factors, from the macro and micro level, SMEs listed company equity incentive effect of influencing factors were analyzed. The fourth part is the core of this article- Case Study. This part based on theory framework, take the actual example of the Shengzhen INVT Co.,Ltd who launched equity incentive plan in May 2013, it has been analyzed of the effect of the implementation of its hybrid equity incentive plan, stock options and restricted stock programs and their factors in details. The last part is the conclusion of the study, point out the shortcomings and further research direction of this paper, in order to play a practice guide for reference.