Effect Of The Implementation Of Incentive Stock Options China Haisum

Equity incentive is a kind of incentive mode,with the method of issuing shares,which has a long-term effect.This system is originated from the United States,and widely used around the world.Equity incentive is rapidly developed in Europe and America,even the advanced Asian countries.With the deep-going of the application,some enterprises break the bottom-line,along with the abusing of the system,various scandals occurred.The exposure of these events slow down the immoderate development of equity incentives.The effects of equity incentives are further reviewed by the academia,the government and the social public.Meanwhile,the forward-and-reverse effects to the governance and the strategy of the company are constantly reflected.This article is based on the state-owned enterprises China Haisum Engineering Co.,Ltd.as an example,the main use of theoretical analysis,case analysis and comparative research methods of the combination of trend analysis,according to the"proposed the question,analysis problem,solve the problem" the basic ideas,focuses on the analysis of answer the following several aspects:(1)listed company equity incentive system on the performance of the company whether has the influence? What is the impact?(2)the impact of equity incentive system of corporate wealth or shareholder wealth is produced? How?(3)what are the factors that affect the performance of the company equity incentive system and shareholder wealth? In this paper,through the analysis of China Haisum implementation of equity incentive plan,deepening the impact on the performance of the company and the wealth effect,and provides suggestions for decision makers to adopt the equity incentive method.For the state-owned holding listed companies improve the equity incentive system,improve the incentive and restraint mechanisms,improve the capital market efficiency of resource allocation efficiency and establish a sound corporate governance system provide a reference case analysis.Especially for the state-owned holding listed companies,for the formulation of a reasonable equity incentive scheme to reduce agency cost,keep the"sophisticated" personnel to provide feasible solutions,to further improve and perfect the state-owned holding listed companies executive equity incentive system and help the country enterprise mixed change "has very important practical significance.The author first gives a brief introduction of the ideas and methods of the research background,significance,research,basic concepts,and then on the equity incentivetheory background for comprehensive elaboration.This article also takes China Haisum Engineering Co.,Ltd.as a case study,on the implementation of the stock option incentive plan are analyzed in detail: first introduced the motivation of company's basic situation and the implementation;then introduced the stock option incentive plan of the main content and the concrete implementation process;and then analyzes the changes and influences of China Haisum implementation of stock option incentive and corporate performance(profit ability,operation ability,debt paying ability,growth ability)and shareholder wealth(cumulative abnormal return and long-term holding period return rate).Through the analysis,the main indicators of China Haisum overall business performance and overall shareholder wealth have been greatly improved,the option incentive plan implementation effect.Then the from three aspects analysis and summed up the case implementation of the positive effect of factors,the company after the implementation of stock option incentive,the unification of the strategic objectives,effectively solve the agency problem,and the performance of the company,the shareholder wealth and corporate value has been effectively improved.Finally,through detailed analysis China Haisum case,puts forward some suggestions on promoting scientific listing Corporation equity incentive system.By means of considering the external environment and the internal factors such as the stage of the development and management situation,the suitable way of equity incentives can be well found.