Research Of The Influence Of Equity Incentive On The Performance Of CHINT

Equity incentive founded in America in the 1950s,the main principle is through equity grants to specific incentive objects such as the management and technical backbone, to improve the work efficiency and retain talent incentive object. Equity incentive is the feature of object gains is affected by the line when the stock market,stock market price is higher, and awarded, the greater the difference, the greater the benefits. In this process, incentive object is bound to work hard to improve company shares, this to a certain extent, the impact on corporate performance. This article is about "equity incentive effect on the performance " as the research subject.This paper studies the CHINT officially launched in 2011 the equity incentive plan in the implementation stage of the impact on the performance, to make specific research and evaluation. When evaluating performance, this paper use event study released after a few days ago in the equity incentive plan draft by calculation of abnormal returns (AR) and cumulative abnormal returns (CAR) reflect the events of the wealth effect of the company and the short-term performance; Use financial indicators analysis method through four profitability, solvency, operation, and growth ability of 11 financial indicators from the longitudinal contrast before the implementation of equity incentive and after implementation of changes in financial performance; Use of efficacy coefficient method to industry's annual average of the standard, choose three comparison companies never implement equity incentive period, the waiting period, and the exercise period of three different period scores ranking, side by side with transverse Angle to evaluate the change of the equity incentive chint to bring; Finally, because one of the purposes of equity incentive is to attract talent, in this paper, at the end of the performance analysis of chint electrical degree before and after the implementation of equity incentive staff structure is analyzed, and in order to account for the change of r&d, to attract the talents,whether could improve the ability of research and development to make the evaluation.Through the analysis draws the following conclusions: CHINT equity incentive in general is a success, but has the disadvantages, good late rights function to the promotion of performance is not strong. In the event study concludes that the draft released the same day abnormal return rate increased significantly,the capital market of equity incentive welcome, form a short-term wealth effect; Financial indicators and efficacy coefficient method are shown , but there is a downturn in the late of exercise performance, growth ability be affected; At the end of this article, in combination with all the elements of equity incentive has made the comprehensive evaluation, and puts forward some feasible Suggestions.The main contribution of this paper from the point of view of multiple objective evaluation the CHINT equity incentive effect on the performance of the company,and the combination of equity incentive factors made comments and suggestions, to carry out the second equity incentive for CHINT future provide reference and reference value, can also help our country private enterprise more reasonable using and to improve corporate performance.