Research On The Influence Of GAC Group's Equity Incentive On Financial Performance

Equity incentives is an incentive method commonly used by modern enterprises.They can alleviate the growing contradiction between principals and agent,and they can save agency costs.This method will promote managers and managers to achieve the same purpose,and maximize the value of the company in pursuit of common interests.With the rapid development of the market economy,the competition between enterprises is extremely fierce,and the competition for excellent talents between each other is intensifying,resulting in a very high brain drain rate.At this time,the importance of equity incentives can be highlighted.Compared with western developed countries,the implementation of equity incentives started relatively late in China,but with the introduction of relevant management systems and the implementation of the equity split reform policy,this policy has developed rapidly in China.However,due to lack of comprehensive legal system guarantees,strict conditions,the nature of different industries in different industries and the difference of the shareholding structure and governance structure of different companies,some programs have not produced good incentives effect.Therefore,in order to widely implement the equity incentive system,this article takes the GAC Group and its equity incentive implementation effect as the research object to provide theoretical and practical cornerstones for it.First of all,literature review was carried out to elaborate and summarize the research founding and basic theories related to equity incentives.Then take the case study method.And this article take GAC Group as the research object,analyze its development status and specific implementation of equity incentives layer by layer,and analyze the motivations of GAC Group's equity incentives combined with internal and external environment.In analyzing the implementation effect of GAC Group 's equity incentives,it mainly uses a comparative analysis method to vertically compare the financial performance before the implementation of equity incentives with the financial performance after the implementation,and compares the financial performance of GAC Group with comparable companies in the same period.After a horizontal comparison,the results show that after the implementation of equity incentives by the GAC Group,various indicators reflecting financial performance have basically been improved to a certain extent.By analyzing the results of its implementation,it is found that the implementation of equity incentives has a varying degree of positive influence on its financial performance.Among them,although the development capacity and solvency have also improved,the improvement is not significant,the profitability improvement is the most significant.On the whole,equity incentives continue to improve the structure of human capital,and to a certain extent,enhance the value and brand influence of GAC Group enterprises.However,there are still many deficiencies in the equity incentives of GAC Group,such as a single equity incentive model and a lack of comprehensive and systematic performance evaluation indicators.Finally,on the basis of the analysis in this article,the typical equity incentives of GAC Group can provide relevant experience and reference for enterprises in the same industry.Before preparing to implement the equity incentive system,enterprises should Starting from its own reality,on the basis of a comprehensive understanding of the nature of the industry and the macro environment,it is appropriate to select an incentive plan that suits the status of the enterprise according to local conditions to improve the internal governance structure.