Study On Real Estate Companies' Performance Changes From The Perspective Of Equity Incentives

In the fierce social competition of the modern society,the competition between enterprises has turned into the competition and preemption of talents.In modern enterprises,the owners mainly through owner entrust-agent relationship to make the operators manage company create benefits for the enterprise,but it has many problems in this relationship,which will increase the company's costs,and make profits down.What is more,in this kind of relationship,it makes it easy for operators only focus on their own access to short-term gains,while ignoring the long-term interests and sustainable development of the enterprise,so in this situation,the equity incentive system arises at the historic moment.Through the equity incentive system,it will make the operators also become the shareholders of the enterprise,and combines the interests of the operators and enterprises,which not only can make the operators better service for the enterprise,also can retain the key talents for the company and promote the further development of the enterprise.In the past ten years,the competition in real estate industry has reached the degree of incandescence,and more and more enterprises have used the equity incentive system into their management.Vanke has put equity incentive in the company in the early 2006,and many real estate industries have joined in the equity incentive after that.Corporate performance usually is the result of comprehensive influences including internal factors,external policies,and environmental factors.Internal factors usually include the corporate governance structure,corporate culture,etc.External factors usually include industry characteristics,national policies,laws and regulations.Internal policies and systems are often implemented for the purpose of improving corporate performance.The equity incentive system is one of the internal factors that affect corporate performance.As the top three housing companies,Country Garden has implemented a number of measures including equity incentives and future leaders to enhance corporate performance in recent years,which has enabled the company to make rapid progress.While,the most influential and most influential in the industry is Country Garden's equity incentive system in recent years.However,it is not known whether Country Garden's equity incentive system has indeed improved the performance of the company.Therefore,this article will use Country Garden as an example to explore the changes in its performance from the perspective of equity incentives,in order to try to understand whether Country Garden's equity incentive system truly improves the performance of the company.This article selects the rapid expansion and development company,Country Garden,for an example.In 2016,the sales performance of country garden reached 308.8 billion yuan,which attracted the attention of the industry,and more and more people began to pay attention to the motivation behind the high performance of it.Through the analysis of the enterprise's performance before and after the implementation of equity incentive,the article will try to evaluate the effects of equity incentive,and aim at the problems in the process of equity incentive to put forward suggestions for improvement,and prefer to offer reference for the industry.