Research On The Effect Of Private Listed Companies Equity Incentive

Under the guidance of the basic theory related to business management disciplines,this article research the implementation effect of equity incentive plan by using theempirical analysis and case study analysis. Firstly, the article focuses on the performanceof equity incentive plan. Secondly, the enterprises are classified as dispersed enterprises,relative holding enterprises, and absolute control-oriented enterprises with thecharacteristic of ownership concentration. Of the three types of enterprises, the paperinvestigates three incentive elements how to work on corporate performance by using theempirical analysis method. We strengthen the credibility of these conclusions by using thecase analysis of the Qingdao Haier Company.We draw two conclusions from this research:(1) equity incentive plan improve thebusiness performance;(2) different types of company should value the equity incentiveelements. Equity incentive elements correlate with the corporate performance in therelative holding enterprise, while there is no clear correlation in the dispersed ownershipenterprise and absolute control-oriented enterprise. Therefore, we believe that the relativeholding enterprise should pay more attention to how to design the incentive elements.Inparticular, the Qingdao Haier Company, a relative holding enterprise, well demonstratesthe effectiveness of the equity incentive plan. In view of this, we suggest that differenttypes of company should design different incentive elements to increase the corporateperformance that can significantly improve the corporate governance structure andmaximize equity incentive effect.