Research On Management Opportunistic Behavior And Its Economic Consequences Under Stock Incentives

As an advanced incentive tool,equity incentives are very popular in western countries.Since the introduction of the "Measures for the Management of Equity Incentives" in China in 2006,more and more listed companies have actively launched equity incentive plans.However,there have been major differences in the research on the effect of equity incentives in Chinese academic circles.Some scholars believe that equity incentives can improve the performance of the incentive company and improve the internal governance structure,while some scholars believe that equity incentives are self-interest tools for managers,and the company also faces problems such as poor incentive results and earnings management.Based on the theory of principal-agent theory,management power theory,incentive theory,and human capital theory,this paper sorts out the influencing factors of corporate equity incentive plans,the implementation effect of equity incentives,summarizes related research on management opportunism and equity incentives.The literature review of managers' opportunistic behavior and other conclusions suggest that management will use its power to conduct opportunistic behavior under equity incentives.Owners of state-owned enterprises are lacking,and management has great decision-making power,which provides management with opportunistic behavior.This paper clarifies the purpose of management of opportunism under equity incentives through mechanism analysis:to achieve equity incentive conditions and to pursue high capital gains.It is believed that the diversification of opportunistic expressions will affect the publication time of the incentive draft to reduce the exercise price.The design of indicators that affect the incentive plan,encourage management to conduct earnings management behaviors and increase profit distribution to maximize its own benefits,and analyze the negative impact of management opportunism on corporate incentive effects.Therefore,this article takes the state-owned enterprise FiberHome Communications as a case company.First,it introduces FiberHome Communication's two-phase equity incentive plan,analyzes and compares the characteristics of each phase of the program,and analyzes and compares the characteristics of the two-phase equity incentive program.The period is more lenient,and it is manifested in incentive mode,performance index setting,incentive period and exercise price.Therefore,this article attempts to analyze the reason why there is such a big difference between the two phases of the shareholding incentive plan of Beacon Communications from the perspective of management opportunism.It is considered that the second phase of the beacon communication's shareholding incentives has more opportunistic behavior,which is specifically manifested in timing and implementation of earnings Manage,participate in the design of equity incentive plans,and increase performance through free-riding.It also analyzes the reasons for different opportunistic behaviors of the management under the two-phase incentive scheme from the perspective of the regulatory environment,market competition environment,and internal development of the enterprise.Finally,from the perspective of financial performance and innovation performance,the negative impact of management opportunism on the effectiveness of equity incentives is revealed.It is hoped that this paper can provide corresponding reference for the design and implementation of the equity incentive plan of state-owned enterprises.