The Motivation And Effect Of Equity Incentive Design Based On Family-exit

Family-owned enterprises are an important force to promote China's economic development.Since the reform and opening up,the rapid development of family-owned enterprises has made indelible contributions to the improvement of the overall strength of China's national economy.With the changes in the external economic environment,traditional family-owned enterprises in our country are constantly moving toward a systemized and specialized management.Inheriting the father is no longer the only way to inherit the family business.It has become the choice of some family-owned enterprises through the introduction of professional managers or the gradual transfer of ownership of the company,and "Family-exit" is the academic discussion of hot spots.In the process of the continuous improvement of the corporate governance structure,the traditional family-owned company adopts the equity incentive system to alleviate the principal-agent problem,which is the choice of many companies.Equity incentive is one of the basic ways and means to alleviate the agency problem.At the same time,the family business also has particularity in the two types of agency problem.The Incentives of Stock Incentives after Family-Oriented Family Enterprises Are Motivated The design motivation of this paper is whether the issue to be studied in this article is whether to motivate management to work hard to create wealth for all shareholders or to seek benefits for major shareholders and senior management,Is it effective to mitigate or exacerbate the unique agency problem of family-owned enterprises?By analyzing the existing literature theoretically and combining the case evidence,this paper divides the motivation of equity incentive into welfare motivation and motivation.This article selected a representative SUPOR as a research case because the company experienced a process from family business to "Family-exit",and the company implemented equity incentive plans before and after "Family-exit".By comparing the specific contents of the three equity incentive plans in 2006,2013 and 2017,we find that the equity incentive plan designed by the company in the process of familiarization has the motivation for the benefit of family members,that is,the welfare motivation.After Family-exit two sets of equity incentive plan has obvious incentive motivation,incentive motivation.Finally,the author analyzes the incentive effects of equity incentive before and after "Family-exit" from three aspects:financial performance,market response and R&D innovation.It finds that the effect of equity incentive in the family-oriented phase is significantly lower than that of the"Family-exit" motivation of equity incentive design.Through the research on the incentive motivation of equity incentive to de-familial companies and the research on the effect of equity incentive,this paper supplements the existing researches on equity incentive from the newer perspective.In practice,it analyzes the future transformation and transformation of the traditional family-owned companies the design of equity incentives in the process provides a reference.