Study On The Implementing Effect And Its Influential Factors Of Equity Incentive Of Shanghai Jahwa

As a long-term incentive system,equity incentive can improve the agent problem after the separation of ownership and management.China carried out Equity Division Reform in 2006,more and more companies imply equity incentive because of the improvement of the law and system environment,but not all the campanies have achieved good effect.Based on this background,the paper takes Shanghai Jahwa as example to analyze the equity incentive effect and its influential factors.It has great significance.At first,with the normative study method,this paper summarizes the study of domestic and foreign scholars about the effect,influential factors and relevant theories on equity incentive.Then with the case study method,based on domestic and foreign literature review and theory basis,the paper analyzes the effect and influential factors of Shanghai Jahwa's equity incentive.This paper analyzes the effect of equity incentive including direct effect of enterprise performance and indirect effect of other aspects.This paper make vertical comparison to analyze the direct effect which before and after the implementation of plan,indirect effects are analyzed from human capital and scientific research conditions.And analyzing influential factors by inner and outer circumstance and The design of equity incentive.Research shows that equity incentive of Shanghai Jahwa acquired positive effect,but there is also a failure.Positive performance are:the profitability and debt paying ability have been enhanced,the employees' professional structureand the level of education have been improved,the number of some new projects and patent have been improved because of the nature of property right,the fierce competition in the industry and reasonable design of equity incentive plan.Invalid performance: because of the instability of board of director structure,the operating capacity and development ability has not improved.During the implementation of equity incentive,corporate profitability has not improved and development ability showed a trend of growth but not stable;on the other hand,due to high conditions,the first phase of the plan was unlock,this will also impact on the staff's enthusiasm.so it's necessory to strengthen the company's internal governance structure and raise the scientific of the plan to reach more positive effect.I hope the research will provide certain reference significance for Shanghai jahwa and other enterprises.