Research On The Effectiveness Of Equity Incentive In State-Owned Enterprises

As an important mechanism to solve the problem of agency in corporate governance,equity incentive has been widely used all over the world since 1950s.Compared with the large scale introduction of equity incentive schemes for listed companies in China,the process of equity incentive in state-owned listed companies is slow.Because the provisions of equity incentive plan for listed companies in China are stricter than those in foreign countries,in order to avoid the loss of state-owned assets,the regulations on equity incentive in state-owned listed companies are more stringent.Whether the mechanism can be applied well in state-owned enterprises is still controversial.What problems do state-owned enterprises face when they are under strict supervision in terms of incentives,incentive period and incentive conditions?Is it possible to achieve the desired incentive effect?These problems have a certain value of research.In this paper,the first case of the first state-owned listed company in China,the two equity incentive of beacon fire technology,is analyzed.From the scope and strength of the equity incentive,the price of the right,the conditions of obtaining the right and the unlocking arrangement,this paper analyzes the real motivation of the equity incentive in the beacon fire technology,and then analyzes the validity of the equity incentive,mainly from the financial situation and non-financial situation for analysis.Financial situation is mainly analyzed from short-term market performance and long-term financial performance before and after equity incentive implementation.Using the event research method to study the short-term market effect after the equity incentive,the study found that the stock price of the beacon technology has a positive reaction on the first day of the announcement of the equity incentive draft.The rate of return shows a downward trend,indicating that the effectiveness of equity incentive is relatively low,and the market is not optimistic about the first phase equity incentive;using financial index analysis,comparative analysis and economic value added(EVA)method to comprehensively analyze the financial performance of the company after the implementation of equity incentive;finally,this paper also evaluates the nonfinancial situation,including the structure of the employees and the research and development of the enterprise,to analyze the effectiveness of the enterprise before and after the implementation of the equity incentive.Through the study of the effectiveness of the beacon technology equity incentive program,it is found that the equity incentive plan of beacon technology is effective in general,realizing the motivation of motivation,improving the performance of enterprises.To reduce the loss of talent and attract the outside talent and mobilize the enthusiasm of the employees,it is beneficial to the research and development of the enterprises,to enhance the core competitiveness of the enterprises and to improve the effectiveness of the equity incentive.Finally,in view of the deficiencies in the beacon fire technology equity incentive plan and some points worthy of reference,the relevant suggestions are put forward for reference by state-owned enterprises and relevant departments.