The Effect And Evaluation Of Toread’s Equity Incentive

In the 1970s and 1980s,western countries began to pursue an incentive system.It was late in our country to push the stock incentive system,which started in the ’90s and started to introduce the equity incentive system.In 1993,shen zhen wanke became the first implementation of equity incentive plan of the company,started to the stock ownership incentive in our country areas along the way.At 2016,marks the equity incentive system in our country in developing constantly to mature gradually.At the end of 2009,China’s gem market facing the whole country receive enterprise listing application formally.In order to achieve the goal of retaining and stimulating talents,the company has launched the equity incentive plan in the context of the immature market,and there will be many deficiencies and doubts.How does the gem board firm design the equity incentive plan?What is the effect of equity incentive implementation in gem?How to improve the problems?These problems worth ponder and research scholars,through the equity incentive,the combination of theory and practice of research in the field contribute your valuable suggestions.This article selected the first listed company-Toread as the research object,in combination with the practical situation of the company to analyze its equity incentive changes and the effect after implementation,has strong representative.In order to evaluate the effect of equity incentive of Toread,combining previous research results with the equity incentive scheme design of Toread,from the four dimensions of financial performance,market performance,incentive object and technological innovation to build equity incentive effect evaluation system,by using comparative analysis method to analyze the changes of financial performance before and after the implementation of equity incentive,and by using event research method to analyze the changes of stock price before and after the announcement of equity incentive of Toread,this paper proves whether equity incentive can improve financial performance,market performance,technological innovation ability and attract talents.Based on the above analysis of the equity incentive effect to discuss the advantages and disadvantages of its equity incentive plan,and have been put forward for the problems that exist in the equity incentive plan,improve Toread equity incentive effect optimization Suggestions.It turns out that:equity incentive has a positive effect on the development of Toread,but it has not achieved the expected effect.After deep analysis of the equity incentive proposal,it has been found that the advantages and disadvantages of the equity incentive schemes of the users exist.Through research,the Toread’s equity incentive scheme has its own advantages,but there are also disadvantages.The main advantages are:continuous implementation of equity incentives,flexible selection of incentives,continuous expansion of the scope of incentives and gradual adjustment of the conditions of exercise rights.The disadvantages mainly lie in the low proportion of stock grant scale,the short setting time of waiting period and validity period,and the single performance evaluation index.These problems seriously affect the long-term development of the firm,and it’s a problem that the Toread’s equity incentive is waiting to solve in the process.To solve these problems,optimization Suggestions respectively from two aspects of internal and external factors:improving equity incentive the implementation of the external environment;promoting the scientific nature of the equity incentive programme design;Sounding equity incentive supervision and restraint.This paper combines equity incentive theory and practice to provide valuable Suggestions for research in this field.