Research On Financial Performance Of Media Groups Equity Incentives

In the eleven years from 2006 to 2017,the number of listed companies in China that have enacted and implemented equity incentives has exceeded 810.These companies have developed as many as 1,110 incentive plans and more than 200 companies have developed equity incentive plans.The quantity is two or more.This article is a case study company-Midea Group is one of these 200 companies.The first chapter of this paper first briefly introduces the research background,research purpose and research significance,and then introduces the research viewpoints and research conclusions of domestic and foreign equity incentives from domestic and foreign scholars over the past three years.The second chapter begins with the definition of equity incentives and the important theory of equity incentives.Then it explains the relationship between equity incentive plan and the company's financial performance and the mechanism of equity incentives affecting financial performance.Methods and indicators to analyze the impact of equity incentives on the financial performance of Midea Group.The third chapter introduces the implementation plan and implementation results of Midea Group's equity incentives from 2014 to 2017.The fourth chapter analyzes the content and implementation results of the equity incentive plan of Midea Group.By reading a large amount of literature and absorbing the views of domestic and foreign scholars,it is decided to use the event research method and the financial index method to evaluate the financial performance of the US group before and after the implementation of the equity incentive plan from the perspectives of short-term financial performance and long-term financial performance.After the analysis,the following conclusions were reached:the financial performance of Midea Group after the implementation of equity incentives was improved compared to the implementation of equity incentives.Midea Group and the four companies in the same industry have horizontal comparisons.Before implementing the equity incentives,the financial indicators of the US group's solvency,development capability,profitability and operational capability are all behind the average of the four companies in the same industry.Leveling up and even surpassing peer companiesIn general,the equity incentive plan implemented by Midea Group is effective,and equity incentives are more conducive to improving the long-term performance of enterprises.Short-term performance is not effective because of the low market efficiency and government intervention.Finally,this paper summarizes the advantages and disadvantages of Midea Group's equity incentive plan,and proposes improvements for the shortcomings.