Analysis Of Equity Incentives And Firm Performance Of Listed State-Owned Enterprise

In 2005,China's "Measures for the Administration of Equity Incentives for Listed Companies(Trial)" was promulgated,and the process of equity incentives for listed companies entered a stage of high-speed standardization.According to the statistics of the Wind database,as of the first half of 2018,a total of 1,823 listed companies in China implemented an equity incentive plan.Due to the double-layer agency relationship of state-owned enterprises,the agency problem is even more serious.However,stateowned enterprises play a pivotal role in the national economy,which further forces state-owned enterprises to take some incentives to make state-owned asset managers pay more attention to company performance.Equity incentive is an extremely effective means to deal with the principal-agent problem.Studying the implementation status and role of equity incentives can not only play a role in demonstrating and guiding other companies which interested in implementing equity incentives,but also improve China's equity incentive system.Therefore,this paper selects NavInfo as the research object,analyzes the design of its equity incentive plan in detail,and comprehensively evaluates the implementation effect of incentives to explore the effectiveness of equity incentives.And finally draws conclusions and puts forward some suggestions for improving the application of equity incentives in state-owned enterprises.It is hoped that this research can provide some reference suggestions for state-owned enterprises that intend to implement equity incentives,and also supplement research methods for company performance evaluation,thus contributing to the development of state-owned enterprise equity incentives.This article is divided into six parts:introduction,theoretical analysis,current situation research,case introduction,case analysis,conclusions and recommendations.The first is the introduction,which leads to the research background and combs the literature to analyze the past research status.The theoretical analysis part first introduces the connotation,elements and main modes of equity incentives,and then discusses its impact on company performance.The second chapter is the analysis of the status quo,including the development process and current status of equity incentives.The case introduction section explains the reasons for the case selection,and elaborates on the program content and implementation process of the stock incentives in NavInfo.The fourth chapter is the case analysis.Firstly,it analyzes the motivation of the implementation of the NavInfo equity incentives and the rationality of the scheme design.Secondly,it studies the short-term market reaction of NavInfo,and then from the company's profitability,operational capability,growth ability,debt-paying ability and EVA model to explore the long-term effects of equity incentives.The final part of this article is conclusions and recommendations.The paper finally draws the following conclusions: first of all,the effect of the new implementation of equity incentives in NavInfo is significant;secondly,the listed stateowned enterprises can only use the double-edged sword if the equity incentives are rationally designed and applied.At the same time,some suggestions are put forward for the conclusion: Firstly,rational design of equity incentive plan is very important,state-owned enterprises should design contracts according to the specific characteristics of the company and the external business environment.The selection of incentive models,the scope of incentive targets,unlocking conditions,exercise arrangements and the design of the program deadline should be reasonable;secondly,the governance structure of state-owned enterprises should be improved,and internal supervision and checks and balances should be strengthened;thirdly,the transparency of some information of state-owned enterprises needs to be strengthened,and at the same time,it should pay attention to the evaluation and supervision of the incentive process by third parties;finally,the external legal environment for state-owned enterprise equity incentives needs to be improved to ensure its long-term development.