Research On The Effect Of Stock Right Incentive In Real Estate Industry

Since the reform of split share structure,more and more listed companies have introduced equity incentive.From 2005 to 2017,a total of 934 listed companies put forward equity incentive schemes 1434 times in Shanghai and Shenzhen stock markets,and in recent years,they have shown a trend of continuous growth.With the increasing number of companies implementing equity incentive,the attention of capital market to the effect of equity incentive has been heated up.The real estate industry has played an important role in the national economy,The competition in the industry is fierce,but relatively few companies implement equity incentives,and equity incentives have only been popularized in recent years.This is unusual for real estate industries with strong capital forces and a high demand for talent.This can not help but the real estate industry equity incentive implementation of the effect of doubt.Poly Real Estate,which has continued to occupy a leading position in the industry for many years,has successfully implemented equity incentives twice,and there are significant differences between the two phases of equity incentive plans.Therefore,this paper chooses listed companies in the real estate industry and Poly Real Estate to analyze,To explore whether equity incentives promote the performance of real estate and Poly real estate.Based on the above background,this paper adopts the method of case analysis,supplemented by empirical research to research on The influence of Stock right incentive on Enterprise performance.Firstly,the paper studies the performance of equity incentive of listed companies in real estate industry in Shanghai and Shenzhen stock markets by means of empirical analysis,It is found that although the number of real estate companies offering equity incentives is relatively small,equity incentives play a significant role in promoting corporate performance.Then,this paper takes Poly Real Estate,which implements equity incentive twice in 4 years,as an example,and deeply Analysis of the effect of its Two-stage Equity incentive.In the part of case analysis,this paper adopts the method of event research,the method of financial and non-financial index,the method of horizontal and vertical contrast,It was found that the first phase of the equity incentive market reacted well,while the second stage did not.In addition,the study found that the implementation of Poly real estate equity incentive improved the financial performance of enterprises,especially in the short term,but the long-term financial performance and non-financial performance improvement was not obvious and even some indicators declined.On this basis,this paper then analyzes the mechanism of Poly real estate equity incentive.It is concluded that Poly Real Estate can improve enterprise performance by constructing a community of interests,controlling the cost and cash flow of an enterprise,restricting managersundefined short-sighted behavior,attracting and retaining talents,and so on.Finally,the paper puts forward the advantages and disadvantages of the design of Poly real estate equity incentive plan,and gives corresponding suggestions.Taking Poly Real Estate as an example,this paper studies the effect of equity incentive and its mechanism.It not only enriches the application of incentive theory,principal-agent theory,information asymmetry theory and human capital theory to the effect of equity incentive implementation,It also brings some experience to the companies in the real estate industry to implement equity incentives,to improve the real estate industry equity incentives slow development,long-term performance poor phenomenon;At the same time,it also plays a certain reference role in the implementation of equity incentive in other industries.