Research On Corporate Equity Incentive Issues

Under the modern enterprise system,the corporate governance structure and incentive mechanisms are increasingly perfect and sound.More and more companies are trying to introduce equity incentive mechanisms,and they have played a positive incentive effect in continuous practice trials and explorations.With the division of labor and professionalism in the society,the separation of enterprise ownership and management authority has resulted in the emergence of principal-agent issues arising from the entrusted agency responsibilities between business owners and management,and the emergence of management and owners.Severe information asymmetry causes the increase of agency costs,which has become a major issue for the development of Chinese enterprises.The introduction of equity incentive mechanism is in line with the current development needs of Chinese enterprises.However,due to the impact of many objective factors such as China's current lack of capital market environment and economic laws and regulations,equity promotion has been hindered by the promotion and development of China's enterprises.At the same time,domestic research on equity incentives is relatively late,and in practice there are Inexperienced,so companies have some problems in the formulation of equity incentive policies.This article selects a listed company that implements equity incentive policies in China as a case to conduct research and analysis,including motivation analysis of the implementation of equity incentive policies,analysis of incentive effects,and the problems and desirable points in the process of summary,analysis,first of all.The current status of China's stock incentives and the policy environment are studied.Through reviewing a large number of literatures,we analyze the status quo of domestic and foreign stock incentives and determine the research direction and ideas of this article.Secondly,we use principal-agent theory,information asymmetry theory,and two-factor theory as The theoretical basis of the research topic is to analyze the role and necessity of equity incentives;and secondly,by selecting a listed company that implements equity incentives in China as a case study,it analyzes from the perspectives of incentives and incentive effects of equity incentives,in which the effects are analyzed.In addition,the company introduced the performance evaluation indicators based on the operating cash flow and main business profits,and analyzed and evaluated the company's performance in conjunction with EVA indicators.From the analysis,it found that it existed during the implementation of equity incentives.question.Finally,through the case analysis,we propose corresponding suggestions for improving the existing problems.The main contributions of this paper's research are as follows: First,this paper analyzes the incentive effect of the traditional performance-based operating activities cash flow and main business profits to the case companies.The biggest advantage of this paper is that its indicators are not easily manipulated by the management.To the company's core business performance evaluation,it can theoretically enrich the equity incentive performance evaluation system,provide reference and reference for China's enterprises to implement equity incentive plans,and formulate equity incentive plans,and in practice is also more objective and operational;EVA performance evaluation indicators were introduced to improve the performance evaluation index system.The significance of the introduction of this indicator is that traditional performance indicators mostly use net profit as a basic performance indicator,so it is easy to ignore the cost of capital,so that the company's value created by the operators and the true shareholder wealth are not fully reflected.The introduction of EVA performance indicators can solve this problem.