Research On Management Opportunistic Behavior In Equity Incentives Of Listed Companies

The first equity incentive plan was born in the United States in the 1950 s.Equity incentives have since gained popularity and is now widely used in countries around the world.Equity incentives can be regarded as a kind of non-cash compensation that represents the ownership of the company.The operator and the shareholders are bundled into a community of interests,allowing the operators to share the profits of the company by completing the performance targets,to solve the problem of the agency and enhance the value of the enterprise.Modern enterprises favor.However,while the equity incentives are popular,there are also some cases where the implementation effect of the company is contrary to the original intention.The equity incentives become the “legal tools” for the executives to seek excess benefits.The reason may be that the management of the rational economic man uses various means to implement opportunistic behavior in equity incentives,which leads to damage to the long-term interests of the company.On the one hand,opportunistic behavior can help managers greatly improve economic returns.On the other hand,the complexity of equity incentives provides a natural barrier to opportunistic behavior.This makes the equity incentives not really work,which exacerbates the problem of principal-agent and seriously damages the interests of enterprises.Therefore,this paper takes the background of equity incentives as the starting point,firstly combines the existing research results of domestic and foreign scholars to theoretically analyze the management opportunistic behaviors that may exist in the process of formulating and implementing equity incentives,and then based on this.Combined with the case of Hisoar,it analyzes the management opportunistic behavior in equity incentives in detail and deepens the understanding of theoretical knowledge.The research in this paper found that:(1)In the formulation of the equity incentive plan,Hisoar executives use management power to develop incentive programs with self-interest.Specifically,its self-interest tendencies are reflected in the unreasonable grant target,the single performance indicator setting,and the lack of industry value reference settings.(2)In the process of implementing equity incentives,the management of Hisoar carefully selected the special time to publish the draft to obtain a lower grant price.At the same time,on the one hand,the use of major asset restructuring "free rider",on the other hand the use of earnings management to manipulate the base period performance,in the foreseeable future performance will be significantly improved,the difficulty of assessment of exercise conditions,to meet the assessment requirements.In addition,the study also found that the continuous high pledge of major shareholders,the non-independence of the remuneration and appraisal committee and the incentives to control the board may be an important reason for the company's management to use the equity incentives to implement opportunistic behavior for personal gain.