Study About Impact On Firm Performance Of S Company's Restricted Stock Equity Incentive

After the completion of the shareholding system reform in China,the company's development protection base has become more solid,and more and more companies have emerged like mushrooms.The separation of the two powers is currently a better way,but owners and managers bring a series of problems to the company for the maximization of their own interests,which has an adverse effect on the development of the company.Equity incentives have an active role in solving principal-agent issues.Equity incentives are a long-term incentive mechanism that links the interests of the owner and the operator,pursuing maximization of the value of the company and ensuring that the operator can also obtain considerable benefits from it.The specific process of equity incentive is to grant a considerable amount of equity to the company's managers,in order to increase their enthusiasm for work,reduce agency costs and improve company performance.Restricted stocks are one form of equity incentives.Restricted stocks have two advantages.The first is that it is beneficial to solve the issue of corporate subscription financing,because the incentive object only needs to pay a small amount of funds or do not need to pay for the purchase of stocks.The second is that it can strongly restrain the incentive objects,avoid short-term behavior focusing on the long-term development of the enterprise,and ultimately promote the healthy development of the enterprise.In order to study the impact of equity incentives on company performance,this article takes S company as the research object,and summarizes the results of domestic and foreign scholars while drawing on the principal-agent theory,human capital theory,and team production theory.The article first analyzed the restricted stock equity incentive plan implemented by S company,such as stock source,incentive target,exercise standard,exercise price,and award conditions.Second,it analyzes the purpose and necessity of S company's equity incentive.Then,the article studies the influence of S company's equity incentive on its performance from two dimensions: vertical and horizontal.In the vertical direction,the article uses the event research method to analyze the impact of S company's equity incentive on market performance,and uses index analysis to analyze its financial performance.On the horizontal side,the article uses the efficiency coefficient method to compare S company with companies in the same industry,same-sector and similar asset size that have not used equity incentives,and finds that the performance of the company after the implementation of restricted equity incentives has increased significantly..At the same time,it has also beenfound that although the limited stock equity incentives of company S have a positive effect on company performance,there are still deficiencies in the incentive plan,for example,the performance evaluation index system is not comprehensive,and the way of exercising rights is unreasonable.Did not give full play to long-term incentives.Finally,the article put forward relevant suggestions for the inadequacies of the incentive plan.To make the equity incentive program fully play its role,it is necessary not only to formulate a scientific and reasonable equity incentive plan,but also to ensure that the relevant laws and regulations related to the equity incentives are safeguarded.At the same time,it is necessary to continuously optimize the internal governance structure and equity structure of the company.