Research On Application Of The Policy Of Stock Incentive In Chinese Small And Medium Enterprise Board

Since the rise of the modern enterprise system, most of the enterprises’ management has been separated from ownership which causes the benefit conflicts between owners and managers. And how to solve the problems in business management and business owner interests has become the focus of domestic and foreign research scholars study. In this context, equity incentive system came into being. And it began to unify the interests of business owners and business managers. Through equity incentive system, we can take the long-term interests between managers and shareholders into account.In the meanwhile, we can change some short-sighted behavior of the managers and make the manager to consider enterprise’s problem in a more growth way.Due to the particularity of its growth and development, most of the minor enterprises of real estate industry in our country which created by the private owner always don’t introduce the managers outside the family. However, when the enterprises go public, It will face bigger and stronger of complex capital market environment and higher financial disclosure requirements. How to run and manage companies professionally and how to develop the company’s future development strategy at a higher level becomes a very important problem before us. All these require the introduction of professional managers and professional management team, and how to make the benefits of external managers and business owners unite is currently a lot of minor enterprise placed in front of the real estate business problems. In this context, it is necessary for us to discuss the problem of internal management and equity incentive in minor enterprises.This paper attempts to start the study from the perspective of case analysis. We firstly choose the two corporations as the classic case:Langglod and RS development. Through the compare the financial data, the level of internal management of these two companies before and after the equity incentive plan, we can find out how the country’s economy and the government’s macro-control influence the effect of the equity incentive plan.In this paper I also try to study policy and market regulation on the real estate industry, the impact effect of the implementation of equity incentive plan, as well as visual contact with the real estate industry company operating policy performance.Through this study and discussion, we can initially prove that equity incentive policies on minor estate companies Langgold and RS development can promote positive business performance and improve internal governance.Equity incentive policy on corporate performance is more obvious, greatly stimulated and enhanced. Equity incentive plan on the one hand to promote the managers at a higher level within the range of longer-term corporate strategy formulation and implementation, on the other hand by increasing the return on core business managers and technical personnel, and strengthen the cohesion and team executives centripetal force. These are the benefits of equity incentive programs for minor enterprises of the real estate corporations.Finally, according to the recent situation of the equity incentive plan operated by the minor estate company and the analysis of the companies’financial data in the article, we give some advices about how to improve the equity incentive plan. And also look into future of the equity incentive policy’ and corporation’s internal management. All of these behaviors contribute a lot of the promotion of the equity incentive and internal management.