Study On The Effects And Influential Factors Of Equity Incentive Application In Stated-owned Listed Companies

The wind of non-tradable shares reform began in 2005 promoted equity incentive application in our country,but the results are often unsatisfactory.Especially in state-owned listed companies,equity incentive even became a self-welfare tool used by the leader.Deepen economic reform provided a new opportunity for state-owned enterprises to implement equity incentive plan.The focus of the reform of the stated-owned companies is to improve the corporate governance structure,while the political reform improves the external environment.Equity incentive is going to be an effective tool for reform.This paper aims to study the related theories of equity incentive and case,provide the strategy for state-owned listed companies to effectively carry out equity.Firstly,this paper summarizes the relevant theory of equity incentive.Then,combining the current situation of the equity incentive application in state-owned enterprises and the economic system reform,this paper analyzes the key factors affecting the implementation of equity incentive utility.On this basis,this paper makes a concrete analysis of the case of Shanghai Petrochemical Company,evaluates the utility of the equity incentive plan from the two aspects of the market reaction and financial performance,and then analyzes the main factors that affect the utility.The conclusions are as follows: firstly,the key factors affecting the implementation of equity incentive utility for state-owned enterprises come from both macro and micro aspects,the on-going economic reform makes the macro factors have great changes;secondly,the market reaction to the SPC case is muted,while the finance performance is getting better;thirdly,the optimistic utility of SPC case mainly benefits from the on-going economic reform and the stated-owned company reform in Sinopec Group.This paper argues that the listed state-owned enterprises should grasp the opportunity from the economic reform,actively improve the corporate governance structure,strengthen supervision mechanism,use market-based instruments to manage the enterprise,which are to guarantee the effective equity incentive to play.