Research About Equity Incentives Implement Effect Of Blue Focus Under The Background Of M&A

The separation of ownership and management of modern enterprises results in principal-agent relationship between shareholders and managers,resulting in agency problems.Equity incentive can make the objectives of shareholders and managers converge through incentive system,and effectively alleviate the conflict of interests between them.Compared with the traditional salary incentive system,equity incentive can combine the interests of shareholders and managers in a longer period of time,and promote them to form a more firm and harmonious strategic cooperative relationship.Equity incentive promises to motivate the target shareholders to participate in corporate decision-making and risk taking into account the long-term interests of the company.The implementation of equity incentive in the Chinese market started later than that in foreign countries.With the development of the market,the reform of non-tradable shares has been introduced,the relevant laws and regulations of equity incentive have been constantly improved,and the development of equity incentive in China is faster and faster.However,after all,equity incentive system has existed in the Chinese market for a relatively short time,and many companies have not achieved the desired good results after implementing equity incentive.The earliest purpose of equity incentive is to reduce the cost of principal-agent.After decades of development,a complete and mature theoretical system has been formed.After choosing a company for merger and acquisition,the inconsistency between managers of both sides of merger and acquisition may bring about the principal-agent problem for the merger and acquisition enterprise,and the implementation of equity incentive at the right time can solve this problem,so as to achieve the purpose of promoting the development of the company.With the development of society,scholars have found that the company's equity incentive has derived opportunistic motivation,that is,the use of equity incentives for their own welfare behavior,including frequent mergers and acquisitions.Some managers make hasty decision on merger and acquisition in order to improve the operating efficiency of enterprises in a short time to meet the evaluation criteria of equity incentive.Imperfect merger and acquisition strategy lead to the failure of later merger and acquisition and affects the company's interests.Therefore,how to make the company's equity incentive system and merger and acquisition strategy combine and complement each other to effectively improve business performance has become one of the explorable directions in the future.This article decides to select BlueFocus for case studies,using principal-agent theory,two-factor incentive theory and human capital theory,using factor analysis method,event research methods,and case analysis.Based on the review of the domestic and foreign research literature system,the analysis method selected BlueFocus as the case and studied the effects of equity incentives,the research results are: From the financial performance analysisof the BlueFocus,the implementation of equity incentive has improved the profitability,growth ability,operation ability and debt paying ability to a certain extent;from the market performance analysis,the implementation of equity incentive has brought short-term wealth effect to the company,and the market has responded positively to this event.Overall,the BlueFocus equity incentive has achieved some positive results,but there are still some areas to be further improved.This paper puts forward relevant countermeasures and suggestions: set up reasonable incentive scheme,cooperate with corporate merger and acquisition strategy,establish sound internal governance structure,strengthen internal publicity and improve the level of information disclosure.