Research On The Implementation Effect Of Aier Ophthalmology Equity Incentive

Under the free enterprise economic system,companies will choose to use equity incentive to solve the principal-agent problem.Equity incentives are the grant of equity to the manager,allowing the operator to participate in decision as a shareholder.This relieves the principal-agent conflict to some extent.Under this background,Chinese enterprises have gradually increased the application of equity incentive.Since Second-board Market was listed in 2009,more and more companies are starting to implement equity incentive plan.But they lack a lot of practical experience.In addition,the domestic capital market is still not perfect at present.Many companies have some problems in the application of equity incentive process.This paper studies the field using the method of combining theory and case.So it has some practical significance to improve the application of equity incentives.This paper mainly discusses the three equity incentive of AIER EYE Hospital.Since its IPO on the Second-board Market,AIER EYE Hospital has issued three equity incentive plans.The three equity incentive plans have significant differences in the form of incentives,the scope of incentive objects,the setting of reserved shares and the assessment indicators.So the study of the case is very meaningful.The purpose of the paper is to analyze the effect of the three equity incentive and give advice to the similar equity incentive cases in the future.On the basis of summarizing the predecessors' research results,this paper constructs the evaluation system of equity incentive effect from the three aspects: financial performance,market performance and corporate behavior.In the announcement stage of the plan,the CAR is used to represent the short-term earnings of the company.In the implementation phase of the plan,the financial performance and the changes in company behavior were used to study the impact of equity incentives on the company's long-term earnings.Using event study and single-sample t-test to examine the market performance of AIER EYE Hospital after three equity incentive respectively.The CAR method is for the short-term performance.The impact of equity incentive on executive behavior is mainly analyzed from the investment behavior and financingbehavior of senior executives.The innovation of this article is to keep track of the three equity incentive plan of AIER EYE Hospital,and evaluate the effect of equity incentive from the short,medium and long term in combination with the purpose of equity incentive.The conclusions of this paper are that the equity incentive of AIRE EYE Hospital brought short-term wealth effect to the company,and has positive abnormal accumulated stock price and get a good market effect.In terms of financial performance,it effectively improved the operating performance and profitability of the Company,laying a good foundation for the long-term development of the Company.From the impact of equity incentive on senior management,based on the detailed comparison of three equity incentive plan and the financial data of the company since it was listed,this dissertation concluded that the implementation of equity incentive has a positive effect on improving the company's operating performance,attracting core technical staff and enhancing the company's scientific research level.