Research On The Effect Of Equity Incentives On Market Value Management

Since the China Securities Regulatory Commission promulgated and implemented the "Measures for the Administration of Equity Incentives for Listed Companies(Trial)" on December 31,2005,a series of documents such as the "Memorandum on Equity Incentives and Related Matters" have been issued to further regulate equity incentives.The implementation of equity incentives has a favorable policy environment;the completion of the split share structure reform has also improved the internal and external governance environment of the company.After the company's ownership and management rights are separated,incentives for stock options for managers are often considered as one of the important ways to resolve conflicts of interest between company shareholders and managers and reduce agency costs.It can both stabilize and motivate company board members and core employees.Role,and can achieve the purpose of improving financing capacity and market value.The market value management system was formally proposed in the "New Nine Articles" promulgated by the State Council in May 2014.It includes three aspects: value creation,value realization,and value management.Market value management performance is a quantitative evaluation of market value management of listed companies.It mainly consists of two parts: value creation ability(financial performance)and value realization ability(market performance).It can comprehensively examine the operating results of listed companies.Equity incentives have not been developed in China for decades,but a large amount of research and practice has made more and more listed companies realize that reasonable equity incentives have an important impact on the company's operating capabilities that cannot be ignored.The implementation of market value management means that a unique Chinese performance evaluation standard that reflects the strength of a company's strength is proposed,and the departure of the market value of a listed company from its real value can be improved from this.Then,can the corporate equity incentive plan achieve positive promotion of market value management of listed companies?The concept of market value management was introduced late,and there are few theoretical studies on the relevance of market value management of equity incentives.The relationship between the two also mainly analyzes the mechanism or empirical analysis of the impact of equity incentives on market value management.Full and systematic research is given in practice.This article takes Yili shares of the two rounds of equity incentive policies implemented from 2006 to 2018 as examples to explore and analyze whether Yili Group's equity incentive policies have a positive effect on market value management,and whether market value management activities that are motivated by equity incentives have an impact on market value management.It has a positive impact and enriched the research ideas on the relationship between equity incentives and market value management to a certain extent.The goal of this article is to study how the two rounds of equity incentive plans released by Yili have effected on market value management based on changes in the total market value of Yili before and after major events,and Yili 's private placement and other business activities.Shareholder wealth maximization goal.The conclusion of the study shows that equity incentives can give managers incentives to adopt various market value management methods to optimize the market value performance of enterprises in the capital market.The innovation of this article lies in the analysis of the impact of equity incentives on market value management within the enterprise and the capital market,and a more comprehensive and systematic analysis of the mechanism of equity incentives on market value management.