A Case Study Of Qingdao Haier 's Equity Incentive

Equity incentive as a solution to problem of "principal-agent" in the modern enterprise is aneffective mechanism to prevent the operator short-term behavior. It is conducive to thesustainable development of the company for a long time. In the late1980s， equity incentive hasbeen widely used by a large number of enterprises in the western country. In contrast，China’senterprise in the early1990s began wading stock options，Equity incentive system began todevelop the standardization process until the China Securities Regulatory Commission gavepublicity to "Administrative Measures (Trial) to Equity Incentive of Listed Company" in2006.Listed companies published equity incentive announcement about682， but only157listedcompanies to complete the equity incentive until2014. Qingdao Haier， one of the company as aminority equity incentive to complete， and is a leading enterprise in China’s home applianceindustry， its equity incentive case studies for listed companies， especially appliance industrylisted companies to provide valuable empirical evidence.In this paper，we will firstly review the related literature of equity incentive at home andabroad， and introduces concepts and the main types of incentive stock. And then introduce theprincipal-agent theory，the human capital theory and the two-factor theory which are three coretheoretical basis of equity incentive. Then，Based on the theories，we analyze the QingdaoHaier’s equity incentive plan as a case study，which includes its equity incentive plan and thecompletion. Moreover， we analyze and evaluate the economic consequences after theimplementation of Qingdao Haier’s equity incentive. The analysis contains six aspects that areprofit ability. Finally，the paper also analyzes the listed company’s implementation status and themain existing problems，and then puts forward some Countermeasures and suggestions.