HK Company Equity Incentive Motivation And Effect Research

As a way of long-term incentive, equity incentive was the most effective means to solve the principal-agent problems, it can avoid the short-term behavior of company managers, the managers pay more attention to the long-term goals of the enterprise. In European and American countries mature capital market, equity incentive has been widely used and good results have been achieved. On December 31,2005, the securities and futures commission issued the "measures for the management of the listed company equity incentive (on a trial basis", officially opened the equity incentive in the new period. Then, countries and adjust the system of accounting standards, taxation system, and the equity incentive measures for the administration of complement each other, and gradually perfect the equity incentive system in our country. Nowadays, more and more companies choose equity incentive, especially after 2010, the implementation of equity incentive of listed companies in the case of rapid growth, companies are more likely to use equity incentive to motivate staffs enthusiasm, to promote sound development enterprises. The development of the stock ownership incentive in our country at the moment is in a critical period, the implementation of equity incentive plan is bound to become a development trend of listed companies. In this paper, it is in this background environment down HK company equity incentive system, in order to equity incentive in our country in the process of continuous development and improvement of some reference value for contribution.This article based on the principal-agent theory, human capital theory, two-factor theory and the theory of corporate governance, choose the equity incentive in the last few years popular mode of corporate governance, using the method of case analysis, combing the relevant literature, with a HK company listed state-owned high-tech enterprises as the research subject to analyze the motivation and the effect of the implementation of equity incentive. Through study the implementation of equity incentive is to establish a community of interests between enterprises and employees, to attract and retain the enthusiasm of employees, enhance the competitiveness of enterprises in order to ensure company’s long-term sustainable development. For HK company financial indicators and non-financial indicators and analysis of the short-term market reaction after the implementation of equity incentive company performance year after year rises, the indicators development trend is good, the innovation ability and the higher the market share in Beijing, investors reflected in stock returns is also good. HK company that is brought by the implementation of equity incentive effects. To evaluate the equity incentive plan in order to make plan for our other companies to provide some reference and reference.The main content of this article includes five chapters, the first chapter is introduction, introduced the selected topic background and significance, research content and framework, research ideas and methods and innovation points in this paper. The second chapter the basic theory of equity incentive and the literature review. The third chapter introduces the reason of the HK company equity incentive and the implementation process. First, a brief explanation for HK company; And then analyzes the reason of HK company implement equity incentive; Finally this paper introduces the implementation of HK company equity incentive process. The fourth chapter analyses the HK company, the implementation of equity incentive effect and case. HK company, the implementation of equity incentive effect from the financial indicators and non-financial indicators and short-term market reaction is analyzed, and then evaluate the scheme for HK company case. The last chapter is this article research conclusion and prospect.