Research On The Implementation Effect On The Stock Ownership Incentive Of Listed Company

Since the implementation of China's reform and opening up policy,many enterprises have joined the tide of reform and opening up.Up to now,Equity Incentive Reform is loved and widely used by the majority of enterprises.The implementation of equity incentive can optimize the corporate governance structure,reduce agency costs,enhance the company's soft power,assist enterprises to retain talent.However,there are still some companies that are lack of awareness of equity incentive.They blindly determine that the implementation of equity incentives will bring adverse consequences to the company,which leads to the deviation in the implementation process and fail to achieve the purpose of equity incentive.Only when the equity incentive is implemented under appropriate background and corresponding plan is released,can it give full play to the role of equity incentives.At present,the status quo of China's equity incentive is worrying.Therefore,it is of great importance to build a reasonable comprehensive evaluation system about the effect of equity incentive.This thesis chooses one of the communications industry-ZTE as the research object.During the process,this thesis adopt the method of the combination of theoretical research and case analysis.The purpose of this thesis is to evaluate the effect of ZTE's equity incentive and to find out the problems in ZTE's equity incentive plan,and put forward the corresponding improvement suggestions.Based on the research results of domestic and foreign scholars,this thesis chooses ZTE Corporation as the research object to define the effect of equity incentive by referring to principal-agent theory,optimal contract theory and human capital theory.Then,in order to evaluate and analyze the effect of ZTE's equity incentive,this thesis has initially created an evaluation system for the implementation of equity incentive effect.This system evaluates the implementation effect of ZTE's equity incentive in three aspects:Financial Indicators,Managerial Short-term Orientation and Personnel Changes.The study finds that the implementation of ZTE's equity incentive can effectively improve the performance level of enterprises,avoid Short-term Orientation,and retain the talents of enterprises.In general,ZTE's equity incentive is effective.