Analysis Of Chinese Listed Corporation To Teminate Equity Incentive Plans

From 2006 to 2015,786 listed Corporation announced equity incentive plans,accounting for 1/3 of listed Corporation in China.During that time,a total of 1598 equity incentive plans were announced.But at the same time,implementation of equity incentive plans was not satisfactory,a total of 220 equity incentive plans were terminated.Change off the market environment,failure to meet performance and change of regulations were the main reasons of the termination of the equity incentive plans,which together account for 80% of termination of equity incentive announcement.Woer Heat-shrinkable Material and Changyuan New Material Group both belong to electrical equipment industry and their main products are heat shrinkable materials used in power equipment.And the two companies are connected to each other whether in the executive or the capital market,Woer Heat-shrinkable Material and Changyuan New Material Group are strongly comparable,therefore I choose Woer Heat-shrinkable Material and Changyuan New Material Group as cases.Woer Heat-shrinkable Material and Changyuan New Material Group launched equity incentive plans several times.In August 2008 Woer Heat-shrinkable Material terminated her first equity incentive plan,on the grounds that the equity incentive regulations changed a great deal and adjustment would be splendid.In May 2010 Changyuan New Material Group terminated her first equity incentive,announcing the reason is that the economy and the market environment had changed significantly,the original program was no longer suitable.In June 2013 Changyuan New Material Group terminated her second equity incentive plan,and this time the reason was that the financial performance did not reach the incentive index.The process of the implementation of equity incentive of Woer Heat-shrinkable Material and Changyuan New Material Group of twists and turns,eventually they still carry out their newest version of equity incentive plans.That two companies reasons to terminate equity incentive plans are also the most common causes of termination of equity incentive plans in China,and termination backgrounds of termination coincided with Chinese overall listed companies termination point and reason,therefore Woer Heat-shrinkable Material and Changyuan New Material Group are typical examples of Chinese listed companies which terminate the equity incentive plans.This thesis consists of seven chapters and five parts.The first part is the introduction,which mainly introduces the background,purpose and significance of this paper,expounding the research ideas and structure,research methods and the expected contribution of this paper.The second part is overview of relevant theories and theoretical analysis.The third part analyzes the status quo of the termination of the equity incentive plans in Chinese listed Corporation,and introduces the termination of the equity incentive and the relevant characteristics.The fourth part is the specific analysis of Woer Heat-shrinkable Material and Changyuan New Material Group termination case of equity incentive,profiling Woer Heat-shrinkable Material and Changyuan New Material Group.In details the fourth part analyses the three termination of equity incentive plans,including economy and market background,internal financial situation,and substitute plans' characteristics.In fourth part,the event analysis method was used to test the market reaction to the three terminations of equity incentive plans.The fifth part summarizes the full text,and puts forward some suggestions on the implementation of equity incentive and equity incentive system.We found that in early times Chinese equity incentive were likely to be suspended,and stock option incentive plans were more prevail,external environmental causes were the main reasons related to termination of equity incentive plans.With Chinese equity incentive implementation of increasingly becoming mature,the likelihood of termination equity incentive has been declining,and restricted stock is becoming popular and termination due to the external environment tends to decrease.