Research On The Effect Of Virtual Equity Incentive Scheme On Corporate Performance

Equity incentive is a long-term incentive mechanism for promotion of corporate performance and operating conditions,and plays a very important role in corporate governance.Since opening in 2013.1.16,as effective complement and important basis of China's capital market,NEEQ Committed to provision of financial services for development of innovative,entrepreneurial,growing small and micro enterprises,such as equity transfer,financing etc.More and more listed companies in NEEQ are launching equity incentive plans in order to improve corporate performance and operation conditions.By the end of 2018,NEEQ listed companies have launched 197 equity incentive schemes,including 115 restricted stock incentive schemes,77 stock option incentive schemes and 5 virtual equity incentive schemes.Compared with other equity incentives,the virtual equity incentive is special,which is a kind of virtual restricted equity with only bonus.As there are few virtual equity incentive schemes launched by NEEQ listed companies at present,and most of them are still in the implementation stage,the effect of virtual equity incentive scheme on corporate performance is not fully reflected.As the first company to publish the virtual equity incentive scheme in NEEQ,this paper selects Jing Ye Yuan to study the influence of virtual equity incentive on corporate performance.This paper expounds the related concepts and theoretical basis of the virtual equity incentive,analyzes its impact on corporate performance evaluation mechanism.This paper analyzes the motivation,details and implementation process of the equity incentive through the case of Jing Ye Yuan,and then analyzes the impact of the virtual equity incentive plan on corporate performance from three aspects: short-term market response,long-term financial information and non-financial information.It is suggested that:(1)based on the short-term market response of the event research method,the virtual equity incentive plan has a positive effect in both the announcement stage and the formal implementation stage;(2)Based on the analysis of EVA and other financial indicators,the operating performance of the virtual equity incentive plan is improved to a large extent in the implementation year.(3)Based on the research status and non-financial information of customer retention,the virtual equity incentive has a good long-term promotion effect on it.To sum up,the implement of the virtual equity incentive plan in 2015 is effective in the current year,performance of the company's share price in the short term,EVA and operation ability has significantly improved,but in the long run,the effect to the promotion of corporate performance tends to weaken,even almost no effect,but some non-financial indicators such as scientific research has a certain continuity.At last,the paper puts forward some Suggestions on how to design the virtual equity incentive scheme suitable for the development of enterprises and how to improve the laws and regulations on the new third board.The main contribution of this paper as follows: through the analysis of the virtual equity incentive cases of Jing Ye Yuan,this paper provides new theoretical explanation and empirical evidence for the choice of equity incentive methods of NEEQ listed companies.The existing researches on the performance evaluation of equity incentive mainly focus on restricted stock,stock option and other incentive methods.Based on past researches,by using the performance evaluation method,this paper analyzes the impact of the implementation of virtual equity incentive on corporate performance from a multi-dimensional perspective,which can provide certain reference for other NEEQ listed enterprises to choose virtual equity incentive plan.