Research On Midea Group Equity Incentive Policy Based On Financial Performance

Equity incentive policies were introduced into China during the reform of state-owned enterprises in the 1980 s.With the gradual popularization of equity incentives in China's capital market,a series of laws and regulations related to equity incentives emerged at the historic moment,providing guidance for the implementation of equity incentive policies It also helps to gradually standardize,mature and improve equity incentives in China.The home appliance industry has developed rapidly after the reform and opening up,and its competition has also shifted from a single price war to a multifaceted comprehensive strength competition.As an important method of corporate governance,equity incentives are favored by many enterprises.In the process of implementing the equity incentive policy,the personal income of senior managers and core backbone personnel is directly linked to the economic benefits of the company.Therefore,this method has always been considered to solve the problem of agency and agency,improve business performance and create corporate value.One of the effective methods.This article takes Midea group equity incentive policy as the research object,and adopts literature research method,case analysis method,comparative analysis method and efficacy coefficient method.This article first starts with Midea group equity incentive policy exercise,and demonstrates the science by establishing a multiple linear regression model.The company 's equity incentive policy has a positive impact on financial performance,and then compares the financial performance changes of Midea Group before and after the implementation of the equity incentive policy,indicating that its debt repayment ability,profitability,operating ability and growth ability have been significantly improved after implementing the equity incentive policy Then,the effectiveness coefficient method was used to analyze the comprehensive performance of Midea Group and the same industry horizontally,thereby verifying the role of equity incentive policy.Theresearch results show that Midea's group equity incentive policy has the advantages of a wide range of incentives,diversified incentive methods,and the combination of equity incentives and economic benefits.Full disadvantage.Finally,based on the perspective of financial performance,a policy to improve equity incentives and its operation guarantee measures are proposed.The research in this article will help Midea Group to establish long-term incentive mechanisms and improve equity incentive policies,and also provide reference for other companies to formulate scientific and reasonable equity incentive policies.