Analysis On The Implementation Effect Of Hisense Electric Equity Incentive

With the increasingly rigid separation of property rights in modern enterprises,the equity incentive system has gradually entered the people's vision.More and more enterprises have begun to notice that the equity incentive system provides vital links between the interests of managers and the interests of owners.The equity incentive system closely links the interests of the two,which increases the opportunity cost of the manager's short-sighted behavior,can fully stimulate the enthusiasm of the employees,and is an effective means to promote the healthy growth of the enterprise.In the western developed countries,the equity incentive system has become popular.Although the research on equity incentives in China is later than that in the western countries,the development of equity incentives in China has also shown rapid development in recent years.However,it cannot be ignored that while the equity incentive system is developing at a rapid pace in China,the problems in the implementation of equity incentive measures are also endless.Many listed companies have poured a lot of manpower and material resources into equity incentives,but the incentive effect obtained is not satisfactory.Therefore,the research on the implementation effect of equity incentives needs to be further improved,which will bring profound significance to the future development and growth of enterprises.Based on the case study method,this paper takes the equity incentive case of Hisense Electric as an example to analyze the implementation effect of Hisense Electric's incentive plan in detail and systematically.This paper starts from the background of the implementation of the equity incentive plan by Hisense Electric,summarizes the basic information and incentive motivation of Hisense Electric Co.,Ltd.,sorts out the main contents of the incentive plan and briefly introduces the implementation of the exercise.Subsequently,using the horizontal analysis and vertical analysis methods,the financial performance of Hisense Electric's equity incentive plan was discussed in depth,and it was found that many financial indicators such as profitability and growth ability of Hisense Electric Co.,Ltd.Significantly improved but weak growth after the end of the incentive program.At the same time,this paper also used the event study method to judge the market performance of Hisense Electric's equity incentives,and obtained the positive feedback from the market.After further analyzing the impact of the incentive cost on the company's operating results,this paper makes a corresponding evaluation of the successes and shortcomings of Hisense Electric's incentive event,and aims at the problems existing in the implementation of the equity incentive plan put forward the constructive suggestion and also summarizes the general experience of improving the implementation of equity incentives.Through the analysis and research of this case,this paper believes that the equity incentive of Hisense Electric has a positive effect on the improvement of the company's performance overall.However,due to the loopholes in the whole incentive process of Hisense Electric,the sustainability of the incentive plan of Hisense Electric is slightly insufficient.Based on the above research conclusions,this paper proposes solutions from the perspectives of scientifically formulating equity incentive plan and strengthening the internal and external environment construction of corporate equity incentives.