Study On The Implementary Effect Of Share Right Incentive Of The New Otc Market Enterprises

With the continuous development of the global economy and the gradual construction and improvement of China's multi-level capital market,more and more companies choose to the new OTC market in order to achieve rapid development.Increasingly fierce competition in the industry among enterprises,not only increased the cost of employing the enterprise,but also put forward the proposition on a business enterprise how to better retain and attract talents.Modern equity incentive system originated in the United States,and began to be introduced into China in 1980 s.After undergoing the labor pain of the localization of the equity incentive,with the continuous development and growth of China's market economy,more and more enterprises begin to use equity incentive as an effective enterprise management method.Share Right Incentive is a long-term and effective incentive method of enabling the employees to obtain a certain stakes in the company and let employees and the company form the interest community,and make the relationship between employee income and corporate interest is positive correlation,keep the interests of both them.The Share Right Incentive plays an important role in solving the principal-agent relationship between the owner and the management.In this paper,a case study describes and analyzes the implementary effect of Share Right Incentive of the New OTC Market;in the first place introduced the basic theory and the main form of Share Right Incentive,analysed the specific situation of implementation of the companies New OTC Market for Share Right Incentive.In the next place,in the analysis of the LX stock company Share Right Incentive program,using the SWOT analysis method to analyze the influence of the external circumstance and internal circumstance for companies in the implementation of Share Right Incentive.Analysis of particular design of the incentive program from several aspects of the scientificalness?the effectiveness of effect and the appropriateness of timing,analysis from seven aspects of LX security ESOP that is " object,model,amount,price,source,time,mechanism".Finally,this paper summarizes the analysis and evaluates the implementary effect of LX stock Share Right Incentive plan,which is the employee stock ownership plan,and points out the enlightenment.After analysis,this paper draws the following conclusions: Share Right Incentive system injects new vitality for the development of enterprises,plays an important role in China's economic construction;the capital market of our country has to establishand improve governance mechanism further,provide Chinese enterprises to the more suitable soil of the development.LX securities company benefited from institutional profit of the New OTC Market,not only with the appropriate Share Right Incentive plan that ESOP,in the period of transformation and upgrading of the LX company to retain talent,but also is the ingenious combination of the private placement model to solve “the serious shortage of funds” problem,the LX company for many years capital scarcity.Share Right Incentive has a significant positive correlation to the development of enterprises,which brings the short-term and long-term wealth effect.