Study On The Equity Incentive Of YLG Company

Since the reform and opening up policy, China’s capital market has gradually runinto the normal track. The margin method has also gradually come to maturity andperfection to attract the majority of investors participating in the capital marketoperations. And the capital markets led to the growth of listed companies at the sametime. Through the capital market operations and financial intermediation, the interestsof investors, listed companies performance and the dividend policy are closely linkedtogether. However, in recent years, there are some of the listed company’s financialperformed badly, however, the managers was able to obtain lucrative return. Thisstrange phenomenon has not only impact the normal development of the operation ofthe enterprise market, but also undermine the investors and owners interests. In thispaper, equity incentive, which impacts on the enterprise as the research object, wasproceed from the series compensation contract management related factors, such asfinancial performance. Equity of YLG is comprehensively insights into the company’sincentive and financial performance data, while discusses the effects of incentivestock options and incentives for corporate financial performance generated by theimpact.Firstly, the origin for equity incentive-two important managementcompensation contract theories is summarized. Generally, commissioned-convergence effect and application of the theory of incentives under the agency theoryof interest can be long-term incentive shares of listed companies to provide atheoretical basis. In modern enterprises, the use of reasonable management equityincentive is able to incentive managers. Then this paper analyzes the financialperformance of listed companies and after YLG Company’s equity incentive plan, wefound YLG implementation of equity incentive programs in the future, the company’sfinancial performance, however, there was stagnation and decline. In a further studyof the YLG’s findings, the paper summarizes the expected results are inconsistentwith the actual equity incentive plan and financial performance reasons. Finally, aftera combination of empirical data with industry data comparison and equity incentivedesign methods, the paper on the design and evaluation of financial performanceYLG’s equity incentive plan put forward some suggestions and measures to optimize.Started from a creative research paper which from the perspective of theeffectiveness of management incentive compensation contract and corporate financialperformance, the listed company’s equity incentive plan YLG actual impact on theanalyzed companies, expanding on corporate design and implementation of equityincentive policies theoretical depth and provides practical applications, and guidance to equity incentive theory enriches the scope and application level as well. Since thisselection YLG company was representative in the industry, and its choice of equityincentive system and other management policies, whether in the industry or marketperformance, has important reference and lessons learned. Therefore, research ideasand method, combined with practical data analysis, can help other listed companies toprovide a reference, and the perfect functioning of the market and providestandardized management experience in the future.