Study On The Effect Of Equity Incentive Based On The Balanced Scorecard Assessment

With the perfection of the equity incentive system and the improvement of the governance level of the listed companies in our country,the equity incentive has been paid more and more attention by the listed companies.The effect of equity incentive is influenced by many factors,such as market environment,industry condition and corporate governance,among which the design of equity incentive plan is one of the decisive factors influencing the success of equity incentive.The key to the design of equity incentive plan is the encouragement and restriction of the object to be motivated,so how to set the conditions of exercising is essential.At present,the conditions of exercising are too lenient.and the setting of performance evaluation indicators are also too simple in our country,which makes the long-term incentive of listed companies in China is insufficient and results in short-term behavior.Therefore,many scholars put forward in theory to introduce BSC performance evaluation indicators while set the equity incentive program conditions,but the real use of this method of performance evaluation of the enterprise is very few.Woer Heat-shrinkable Material is one of the few enterprises to adopt this method of assessing,compared with other enterprises,this company has implemented a longer time,so it has a certain research value.This paper firstly analyses the effect of Woer 's stock equity incentive from the four dimensions of BSC,and then uses AHP and ECD to analyze the whole performance of Woer's stock equity incentive,and draws the following conclusions:(1)After implemented the equity incentive,the overall performance score of Woer Heat-shrinkable Material improved obviously,the overall incentive effect is notable,there is no short-term behavior,with long-term incentive.(2)After the company of Woer implemented the equity incentive,its financial,customer,internal management and learning and growth performance of the four dimensions have increased,and the performance of internal management and learning and growth are more obvious,the company pay more attention to personnel training and technological innovations,innovations are particularly prominent.(3)After introducing BSC performance evaluation indicators,the conditions of exercising became more stingent,which reduces the management's short-sighted behavior and makes the management pay more attention to the long-term development of the enterprises,the R&D and innovation ability has been improved effectively,at the same time alleviates the principal-agent problem to a certain extent.This paper aims to provide some reference value for other enterprises to design the equity incentive plans by researching on the effect of Woer's stock equity incentive,and help enterprises to perfect the conditions of exercising,improving the implementation effect of equity incentive.