Research On The Mitivation And Economic Consequences Of Listed Companies' Successive Multi-period Equity Incentives

Equity incentive can help enterprises alleviate principal-agent contradiction and reduce the drain rate of key talents.At present,equity incentive has been widely used in talent intensive industries to strengthen the construction of talent team and optimize the corporate governance.However,there are still a few listed companies that implement continuous multi-period equity incentive.For many companies,the implementation of equity incentive only brings short-term benefits,but not good long-term effect.Continuous multi-period equity incentive is a kind of incentive plan that enterprises roll out and implement through continuity.It can gather talents for different enterprise life cycle and new business.In order to explore what types of enterprises are suitable for and what economic consequences can be brought to enterprises,this paper will analyze the continuous multi-period equity incentive.In this context,this paper selects Hand Enterprise Solutions Co.,Ltd.as the research case which has the most times of implementing equity incentive in China's listed companies.Since listing on the gem in 2011,HAND has launched eight consecutive equity incentives.Up to now,the first six equity incentives have already reached the performance unlocking index.At the same time,the main business of HAND,high-end ERP implementation service,is developing to a new height.Besides,HAND is moving towards the goal of digital ecological integrated service provider.In order to explore the motivation and economic consequences of the continuous multi-period equity incentive scheme of HAND,based on relevant theories and literature research,this paper builds a theoretical analysis framework of the continuous multi-period equity incentive.In the case study,firstly this paper analyzes the motivation of the continuous multi-period equity incentive of HAND,and then combined with the design of the equity incentive scheme,this paper clarifies the impact path of the continuous multi-period equity incentive on HAND,and finally the paper uses the method of combining horizontal and vertical comparison to research the economic consequences.This paper concludes that the continuous multi-period equity incentive is applicable to both talent intensive industries and technology intensive industries.And it plays an important role in the capital market reaction,financial performance and innovation ability performance of enterprises through dynamic incentive mechanism.