The Research Of Y Company’s Equity Incentive Effectiveness And Influencing Factors

After years of practice, equity incentive has become an important way of long-term incentive with the modern company’s system improvement. From 2005 when equity division reform began, our country have issued a series of laws and regulations about it, making the equity incentive mechanism get standardization development, especially many listed companies began to develop and imply equity incentive plan since 2009.According to Wind database statistics, a total of 817 listed companies’ equity incentive scheme was proposed from 2006 to 2015, and there are 166 companies implied the announcement for the first time in 2005. Although the proposed draft company is on the rise, but not all the enterprises implying of equity incentive plan have achieved success.So this article is based on Y enterprise’s data to analyze and study the effect of equity incentive implementation, and then put forward the rectification opinions based on the failure part, thus warning the companies to do specific analysis when making equity incentive scheme in order to get progress continuously in practice.For the calculation method, case studies combined with normative study are used basing on the theories related to the equity incentive to analysis the effectiveness of the implementation of equity incentive. The paper believes that the implementation of equity incentive should be fully understood, researched, and analyzed about internal and external factors, then choose reasonable and effective design scheme. First, this article elaborated the research background and significance as well as the equity incentive of relative literature at home and abroad, the second part introduces the related concepts of equity incentive theory and the basis of this writing; The third part introduces a case of equity incentive plan of the enterprise and implementation of motivation, etc; The fourth part analyzes the outcome of Y’s equity incentive, including both effectiveness and failure; The fifth part searches the reason for the failure of the implementation of equity incentive and finally put out suggestions and advices for Y company’s accordingly.This paper concluded the following conclusion after study: With the separation of management and control, equity incentive is regarded as a kind of important effective way of long-term incentive which can prevent the short-sighted behavior of managers in the management and leading them pay more attention to the enterprise, making the enterprise developing persistently and healthily.So equity incentive is always regarded as an effective solution to the problem of listed company "entrust- agent";Enterprises showed more severe failure in the aspect of equity incentive effect, the implementation of equity incentive effect is affected by internal and external environment in many aspects, in such aspects as design content, design of assessment criteria and many places in need of improvement.Therefore this article provides some suggestions and advice to solve the problems that companies are facing, such as scientific and reasonable equity incentive plan designation, motivate diversified assessment index project, information disclosure mechanism improvement of listed company equity incentive behavior.