Evaluation And Optimization Of The Effect Of Qingdao Haier's Equity Incentive From The Perspective Of Investment Efficiency

As a long-term institutional arrangement,the equity incentive mechanism aims to balance the different goals of the owners' and operators' after the separation of ownership and managerial rights.Moreover,the equity incentive mechanism influences the company's performance through influencing the incentive object's behaviors.Meanwhile,investment behavior is one of the most important decisions of the management of the enterprise,which has a significant impact on the company's performance and future development.Investment efficiency is an important indicator of whether the investment behavior is effective or not.However,it is not long that China's listed companies implement equity incentive plan,its long-term performance is not fully apparent.This paper studies the influence of equity incentive on the efficiency of the company's investment through studying whether the management will focus on the company's long-term development and select the company's investment projects that benefit the company's long-term performance after the company is in the implementation of equity incentive program.Therefore,the analysis of corporate equity incentive policy from the perspective of investment efficiency becomes a test of the necessity of enterprises.First of all,this paper introduces the research background and significance,as well as the research status at home and abroad,the related concepts and theories.Secondly,this paper takes the leader of China's household electrical appliance industry--Qingdao Haier Co.Ltd.as the case.By analyzing the investment and financial data of Qingdao Haier in the past ten years from 2006 to 2015,this paper makes a comparative analysis with the average value of the enterprise which is not implemented,and then to determine the impact of the implementation of equity incentive on the investment efficiency of Qingdao Haier.Finally,through the evaluation of the implementation effect of the equity incentive of Qingdao Haier,it is found that the effect is not satisfactory.This is mainly manifested in two aspects: one is that there are unreasonable problems in the equity incentive plan developed by Qingdao Haier,in terms of performance appraisal indicators,incentive objects,incentive period and so on;the other is the imperfect corporate governance structure.In view of the problems existing in the equity incentive plan of Qingdao Haier Co,this paper gives the Optimization strategy.Firstly,a reasonable and effectiveequity incentive program is crucially influential,and the company should combine a wide range of compensation and equity incentive as its incentive model and financial and non-financial indicators as its conditions of exercise evaluation,and introduce the punitive conditions to evaluate the incentive object.Moreover,the problem of the source of funds can be solved by the combination of self-financing and incentive funds.Secondly,the related measures to implement the company's equity incentive are also very important.The company should strengthen the constraints of executives through the establishment of compulsory insurance system and further improve the company's information disclosure level when the company strengthens the supervision.