Case Study On The Effect Of Equity Incentive Of Gang Yan Gao Na

With the constant expansion of enterprise scale,ever-changing economic environment,as well as the cross-region and global enterprise operation,more professional managers have been involved in the management of enterprises.As a result,the problem of asymmetric information between managers and shareholders gets worse,while the principal-agent relationship between enterprise owners and managers becomes more complicated.To further improve the management efficiency and lower the agent cost,the equity incentive system emerges.Ever since the equity division reform in 2005,implementation standards of equity incentive have been issued and perfected continuously in China,and practiced by more and more listed companies.Currently,various listed companies are executing the equity incentive,but how it works,whether it can reach the purpose of incentive and boost the development of enterprises are still key topics in researches of the financial theory field.In this paper,financial effects brought by the equity incentive are further studied with the case of CISRI-GAONA as the research object,aiming to help solve the above mentioned problems.The financial effect of equity incentive,its influence on the business performance,and the market response to the equity incentive event of CISRI-GAONA are further analyzed with CISRI-GAONA equity incentive case as the research object,using various research methods,including the event study method,EVA model,DuPont analysis,etc.It consists of five parts: part one is the introduction,covering the research background,significance,etc.Part two includes basic theories and literature review,stating related basic theories of the equity incentive,as well as the domestic and foreign research status.Part three is the case analysis of the financial effects caused by the equity incentive in CISRI-GAONA.The equity incentive case is introduced simply,and motivation of equity incentive implementation is analyzed.Part four mainly analyzes the financial effects of CISRI-GAONA equity incentive.Furthermore,the financial effects of equity incentive implementation,its influence on the comprehensive performance EVA,and market response to the event are thoroughly analyzed.Part five is the analysis of the force and effect on the management layer,going deep into the function and effect of equity incentive implementation on managers.Finally,it comes to the conclusions and suggestions.Based on the above research,the following conclusions are drawn:(I)The equity incentive implementation in CISRI-GAONA has a positive impact on the improvement of business performance;(II)The equity incentive receives good market responses;(III)The equity incentive implementation encourages the management layer of CISRI-GAONA perfectly.