Case Study On The Financial Effect Caused By Equity Incentive Of Glodon

If an enterprise wants to gain its competitive edge in the industry competition,it will need to retain and expand the human capital and set it as the pinnacle of enterprise development.But the conflicts of interest between owners and managers of listed companies are born with problems.Making the trustee of the owners in an enterprise create value for enterprises is really a hard problem for enterprise development.The significance of this paper is that it will discuss the effect of equity incentive,and how to make talent work hard for the company and how to create enterprise healthy atmosphere and so on.The development of the stock ownership incentive in our country is still not mature because the establishment of the market mechanism is still not perfect.Without a strong guiding policy,it is greatly constrained for domestic enterprise incentive system to play a role in China.Enterprises lack experience to develop appropriate incentives.Therefore,the use of equity incentive in our country is still at the primary stage.Enterprises’ interior design is not scientific and reasonable and their external related system is not perfect.As a result,the implementation of equity incentive is not satisfactory.Therefore,the research on the company’s equity incentive effect has great social significance.Equity incentive is a big subject urgently to be solved in the software industry because high-tech enterprises need technical talent.In this paper,we set Glodon Software equity incentive cases as the research object.Based on the use of financial ratio analysis and event study method,dupont analysis,incentive method and other research methods,this paper intends to go into details of the above problems,analyze the financial effects and impact on business performance.Hopefully this paper may provide reference to implement similar equity incentive of listed companies.This paper discusses the financial effect caused by equity incentive of Glodon in six aspects: the first part describes the general outline of this article and it mainly talks about the research background,significance,content,innovation points and methods.The second part is the literature review.This part briefly introduces the relation between equity incentive and corporate performance.The third part introduces the case of equity incentive.This part starts with the SWOT analysis of the current development of software industry and then it slowlyintroduces Glodon Software and the basic situation of the case of equity incentive.The fourth part is Glodon Software company equity incentive effect analysis,it mainly analyzes the equity incentive implementation of the company’s financial situation and the influence of the market reaction.The fifth is divided into strength analysis and effect analysis of equity incentive.The sixth part is the conclusion and suggestions,it summarizes the implementation of Glodon Software equity incentive plan along with advantages and disadvantages as well as suggestions.