Research On The Impact Of Equity Incentive On Company Performance Of Poly Real Estate

The <Measures for the Equity Incentives of Listed Companies>(for trial implementation)started in 2006 was the beginning of equity incentives for listed companies in China.Related documents concerning equity incentives were also gradually introduced during the period.In July 2016,the <Measures for the Management of Equity Incentives for Listed Companies> was ordered and came into effect in August,which indicated that the development of the equity incentive system in China has become increasingly perfect.Equity incentives are regarded as a long-term incentive mechanism that can effectively solve a series of problems arising from the entrusted agency relation of companies.There were 1150 listed companies that implemented equity incentive plans from 2006 to 2016.It can be seen that more and more listed companies hope to achieve the goal of improving their business performance,retaining core talents and promoting the long-term development of the company by implementing equity incentive plans.However,a large proportion of the companies that implement equity incentive plans have failed to implement them because of unreasonable project design and applying other companies' experience mechanically.With the increasing frequency of implementation of equity incentive plans,how to explore a set of suitable solutions for the company tends to be very important.The development of the real estate industry is deeply influenced by the country's macroeconomic environment and policy controls.It is an important force for GDP growth and has a close relationship with people's livelihood.Therefore,the healthy development of the real estate industry is of great importance.Poly Real Estate,as one of the top 10 listed companies in the real estate industry,actively responded to the call for deepening reform of state-owned enterprises and launched an equity incentive plan in due course.This article intends to analyze the impact of the Poly Real Estate equity incentive plan on the company's performance,and hopes to provide some effective reference opinions for Poly Real Estate and other companies that plan to implement the equity incentive plan in the same industry.Based on principal-agent theory,human capital theory and incentive theory,this paper uses the financial index method to analyze the impact of the implementation of the equity incentive plan on the management behavior of the management.Secondly,from a longitudinal perspective,the company's performance changes are compared and analyzed.Then uses the comparative analysis method and draws lessons from the difference-in-differences model to compare the company performance before and after implementation of Poly Real Estate's equity incentive plan with comparable companies from a horizontal perspective.From the analysis results,the equity incentive plan implemented by Poly Real Estate was generally successful.After the implementation of the equity incentive,the management took active business decision-making actions,considered the long-term healthy development of the company,and generally enhanced company performance,which achieved the purpose of implementing the equity incentive plan.At the same time,there are also some problems in the design of the program.Therefore,this paper also puts forward some improved suggestions: the coverage of incentive objects should be wider and the proportion of core employees should be increased;assessment indicators should be diversified,and non-financial institutions such as market share should be added.Indicators;exercise conditions should be adjusted according to local conditions and set according to the operating conditions of different regions.