Research About Equity Incentives Implement And Effect Of Agricultural Listed Company

As the foundation of the national economy industry,the development of agriculture affects the operation of national economy.Our country has been given to agricultural enterprises a variety of preferential policies,and supports its diversified development.However,because of the weak agricultural innate quality,the competitive advantages of its listed companies become weaker.Coupled with the imperfect corporate governance system,to a large extent,the efficient development of agricultural listed companies are restricted.The principal-agent contradiction,which is caused by the separation of ownership and management,is one of the cores of the agricultural listed company governance.As part of the corporate governance,Equity Incentive mechanism can solve the problem of principal-agent contradiction effectively.It can combine the interests of shareholders,company and the operator individual together,so that the parties concerned about the company's long-term development.Since the reform of non-tradable shares formally staged in 2005,the Equity Incentive has been developing in our country for decades.Along with the continuous improvement of Equity Incentive mechanism,more and more corporations hope achieve the goal of company value maximization with the help of the Equity Incentive mechanism.There are seldom agricultural listed companies however,implementing the Equity Incentive plans,that successfully implement and improve the company's operating performance are much rarer by statistic testing.In addition,the enterprise also has life cycle like organism.In different life cycle stages,the enterprise has different development characteristics and strategic planning.Thus,different Equity Incentive plan must produce different effect and influence.Therefore,it is necessary to study certain Equity Incentive plan in certain life cycle stage of agricultural listed companies and the effect it brings.Based on enterprise life cycle theory,the paper tries to analyze two agricultural listed companies,which have chosen through the sample selection process,as case company-Yasheng group and Haida group.First,this paper analyzes the situation of two case companies.Yasheng group adopted the stock option mode of Equity Incentive plan in mature period whereas Haida group chose stock options mode of Equity Incentive plans in growth period,and using the combination of stock options and restricted stock of Equity Incentive plan in its mature period.At present,Yasheng group has terminated the implementation of Equity Incentive plan,while incentive plan of Haida group is still in progress..Then,this paper analyzes the Equity Incentive schemes and the effects of short-term stock price and long-term operating performance reaction of two companies,and makes further study to analyze other factors that affect the effect of Equity Incentive.The Equity Incentive effect of Haida group is superior to the Yasheng group by analyzing.Finally,this paper put forward suggestions to Yasheng Group,which has already stopped Equity Incentive plan,some experiences and references.According to this instance,the paper expects to help agricultural listed companies explore the rules in implementing the Equity Incentive.