Research On The Effect Of Equity Incentive Of AIER EYE Hospital

Equity incentive in the modern enterprise system is regarded as an important tool to solve the principal-agent problem,it prove a way for the operator to take in decision-making in the way of equity grant.Equity grant is able to ease the conflict between the interests of the principal and the agent;it also can avoid the short-sighted behavior of company managers,and it can make operators to work hard for the long-term development of the company.Under the background,enterprises of China have taken the application of equity incentive more and more for these years.Since the Second-board Market was listed in 2009,more and more companies are starting to implement equity incentive plans,but most of them lack the practical experience.What's more,the domestic capital markets need to be enhanced.A lot of companies do have certain problems in the application of equity incentive plans.So,it will be practical meaningful to research and analyze this field.This paper mainly discusses the three equity incentive of AIER EYE Hospital.Since its IPO on the Second-board Market,AIER EYE Hospital has issued three equity incentive plans.The three equity incentive plans have significant differences in the form of incentives,the scope of incentive objects,the setting of reserved shares and the assessment indicators.So the study of the case is pratical.The main purpose of the paper is to analyze the effect of the three times of AIER EYE Hospital 's equity incentive and prove advice to the similar equity incentive cases in the future.The effect of equity incentive is analyzed from three aspects: market performance,financial performance and the impact of equity incentive on senior management.Using event study and single-sample t-test to examine the market performance of AIER EYE Hospital after three equity incentive respectively.The CAR method is for the short-term performance.Taking into account the assessment conditions of equity incentive are net profit growth and return on equity,so financial performance is mainly analyzed from net profit growth and return on equity(ROE).The impact of equity incentive on executive behavior is mainly analyzed from the investment behavior and financing behavior of senior executives.The innovation of this article is to keep track of the three equity incentive plan of AIER EYE Hospital,and concludes that the design of indicators of equity incentive assessment is closely related to the investment behavior of senior executives.The conclusions of this paper are that the equity incentive of AIRE EYE Hospital has positive abnormal accumulated stock price for short-term effect and get a good market effect.In terms of financial performance,it effectively improved the operating performance and profitability of the Company,laying a good foundation for the long-term development of the Company.From the impact of equity incentive on senior management,based on the detailed comparison of three equity incentive plan and the financial data of the company since it was listed,this paper concludes that the design of the index of equity incentive assessment is closely related to the executive investment behavior.