Equity Incentive Of Listed Companies On Corporate Performance

Most successful companies will have a sound system foundation,so as to ensure that the enterprise management personnel and technical personnel with relative stability,and can be considered for the long-term development of enterprises.A set of perfect and effective internal incentive mechanism is an important part of the institutional basis?The modern enterprise system gradually established after the successful implementation of the share reform,more and more enterprise begin to use this incentive mechanism which makes managers a more long-term strategic perspective by giving managers the right to obtain a company's stock or equity linked to a certain condition in order to improve the contradiction between the shareholders and managers as also as the enterprise's own system foundation,the effect of stock ownership incentive mainly lies in the subjective initiative of the managers,The incentive object can enhance the performance of the enterprise through obtaining incentive which can make them do better?Once the performance promotion,the company's stock price will rise,in this kind of incentive system,managers and shareholders can be more consistent and the principal-agent problem can be solved further because the stock price is the best tool to reflect the performance of the company,the increase of it will bring managers more benefits.As a testing ground for the incentive program,high-tech manufacturing have more experience,TCL Group is still a novice though it is a member of the technology manufacturing enterprises,we can analyze the operating results of TCL Group by the method of comparative cases and financial analysis which in order to reach its relevance between the incentive plan and performance? First of all,the author analyze the relevant theories and principles of equity incentive on the basis of previous studies so as to pave the way for evaluating the effectiveness of the group?Secondly,we analyze the background and reasons of the implementation of equity incentive in TCL group as well as make a specific description of the incentive plan content and exercise,at the same time,the paper analyzes the performance changes after the implementation of equity incentive from the aspects of management,investment,financing,shareholder returns,stock price changes and agency costs,and makes a brief comment on the effect of the implementation?Finally,we will look at the whole Chinese market,and put forward some concrete suggestions and prospects on the implementation of the domestic incentive plan?Through the analysis of TCL group,it is found that the equity incentive and corporate performance is positive correlation,but the extent of the incentive is limited?In the meantime,for the domestic market,although the development of equity incentive in full swing,but there are still many systems,laws and market deficiencies need to be addressed and improved?...