Research On The Implementation Effect Of Fuanna's Continuous Equity Incentive

Due to the continuous expansion of the scale of enterprises in China,In order to further improve the management efficiency of enterprises,reduce the agency cost between shareholders and managers,managers in the process of management work efficiency,more and more enterprises in our country the successful implementation of equity incentive plan.According to the Shanghai and shenzhen two city public Wind information disclosure of the summary of information,as of December 31,2018,3567 listed companies in the a-share market in China,Among them,1917 equity incentive plans were successfully implemented,and the incentive coverage rate reached nearly two-thirds.With the gradual improvement of relevant legal systems,more and more listed companies in China have established a sustained equity incentive mechanism,Among them,many listed companies have implemented equity incentive twice,while there are 108 companies in three phases,30 companies in four phases,4companies in five phases and 10 companies in more than six phases.However,what is the effect of continuous equity incentive,whether it can achieve the purpose of incentive,create wealth for shareholders,and ultimately achieve the promotion of the company's value,and obtain the expected effect become the focus of this paper.In this paper,six consecutive implementation of equity incentive private listed companies Fuanna the research object,from the market,financial and non-financial aspects of the implementation of equity incentive effect evaluation.In the scheme announcement stage,the event study method is adopted,and the abnormal return rate(AR)and cumulative abnormal return rate(CAR)are used.Represents the realization of the company's short-term earnings;In the scheme implementation stage,through the financial indicator method and the efficacy coefficient method of longitudinal horizontal comprehensive analysis of the company's long-term performance changes,and finally come to the conclusion of this article: Anna company in the equity incentive plan announced,short-term market performance is not obvious;With the continuous implementation of the incentive scheme,many financial indicators of the enterprise have been significantly improved,and the overall performance is in an upward state.In terms of long-term incentives to achieve a certain effect;expenditure has been furtherincreased,and product innovation ability has been improved,but it has not played its due role in retaining talents,and the incentive scheme needs to be further optimized and improved.This paper objectively evaluates the implementation effect of Fuanna's continuous equity incentive from various angles,and puts forward some suggestions combined with the implementation plan of equity incentive,which provides certain improvement direction for the later listed companies to continue to implement the equity incentive plan,and lays a certain foundation for the regulatory authorities to formulate relevant policies to guide listed companies to standardize the implementation of equity incentive plan.