Case Study Of Stock Ownership Incentives Of Dahua Share

As a long-term incentive mechanism,equity incentives play an important role in stabilizing core talents and reducing the cost of agency.Compared with Western countries,China's equity incentive mechanism started late.Until the CSRC promulgated the "Measures for the Administration of Equity Incentives of Listed Companies(Trial)" in 2005,China's equity incentive system gradually became standardized.With the gradual improvement of China's equity incentive regulations,more and more listed companies choose to implement equity incentive mechanisms.Equity incentives have become a research hotspot,but the equity incentive mechanism has a short application time in China,and some enterprises have not achieved the expected effect of implementing the equity incentive mechanism.Therefore,it is important to conduct case studies on listed companies that implement equity incentives in the current context.Theoretical and practical significance.This paper takes Dahua shares as the research object,first clarifies the background and research significance of the topic,determines the necessity of this research,and combs the domestic and foreign literature from the perspectives of equity incentives,program elements and equity incentive effects.Next,the relevant theoretical basis of equity incentives is introduced.Then it discusses in detail the motivations and content of the implementation of equity incentives in Dahua.Then use event research method,factor analysis method and economic value added method to deeply analyze the market reaction,business performance and enterprise value before and after equity incentive.Then use the two-factor theory and human capital theory to analyze the non-financial performance before and after the equity incentive.The final analysis of the issue of the equity incentives of Dahua is that the choice of incentive mode is too singular,the set of exercise conditions is too low and the stock reserve rights are not reasonable.And put forward corresponding improvement suggestions: choose the appropriate incentive mode,formulate reasonable exercise conditions and rationalization suggestions to enhance the strength of stock reserve equity.Finally,it is concluded that,first,the implementation of equity incentives by Dahua shares has achieved a good market response.Second,equity incentives have a significant positive effect on the improvement of business performance and corporate value of Dahua shares.Third,the implementation of Dahua shares Equity incentives have stabilized the talent pool of enterprises.At the same time,it summarizes the enlightenment that Dahua shares implement equity incentives to implement equity incentives for other listed companies,and hopes to provide valuable reference for enterprises and other enterprises to formulate equity incentive plans.