Study On The Motivation And Effect Of Multi-period Equity Incentives In Navlnfo

The equity incentive system makes the goals of business operators and owners converge to a certain extent,and alleviates the principal-agent problem.After equity incentive system introduced in China,equity incentive has been implemented in enterprises,and the effect has gradually emerged.Among the 337 equity incentive plans for Chinese A-share in 2019,159 are non-first-period equity incentive plans.Multi-period incentives are becoming more normal.Since the third plenary session of the 18 th CPC Central Committee explicitly encouraged the state-owned enterprises to carry out mixed ownership reform and ESOP,more and more mixed ownership enterprises have participated in the practice of equity incentive.Whether the equity incentive has brought the anticipated effect for the mixed ownership enterprise,and whether the multi-period equity incentives can make the enterprise achieve the goal of long-term and sustainable incentive,these problems need to be further explored and verified.After reviewing the research background and relevant literature on equity incentive,this paper selects two graduate perspectives:one is the perspective of multi-period equity incentives in mixed-ownership enterprises,and the other is studying of the implementation of equity incentives from the positive performance and whether to imduce eranings management behavior.This paper selects Navlnfo as the object of case study,and studies the background,the process of mixed ownership reform,the scheme design and progress of equity incentives of Navlnfo.This paper focuses on the analysis of the motivation and the effect of multi-period equity incentives in Navlnfo:This paper researches the motivations of each period equity incentive of Navlnfo;In terms of effect,this paper focuses on the persistence analysis of the effect,and studies the positive effect on operating effect and the negative effect on earnings management behavior.Through the research,the following conclusions are drawn:The equity incentives optimize governance structure,retain and attract a large number of outstanding talents,which help Navlnfo to improve the innovation ability,optimize business layout and stabilize themarket share;Event-study analysis shows that the short-term market reactions of the equity incentives implemented by Navlnfo are well;The problem of agent cost in Navlnfo is alleviated to some extent.After the implementation of the multi-period equity incentives,the profitability,operating capacity,debt paying ability and development capacity of Navlnfo tend to a good prospect;In the analysis of accounts receivable,deposit received and non-operating profit and loss,it is found that the implementation of the equity incentives in Navlnfo will lead to earnings management behavior,but the behavior does not cause adverse impact on the long-term performance development of Navlnfo;The implementation of multi-period equity incentives in Navlnfo will consolidate the operation and innovation achievements of the previous equity incentives,and give play to the role of human capital.At last,this paper summarizes the advantages of the equity incentives implemented by Navlnfo,and puts forward suggestions on the problems existed in the equity incentives of Navlnfo,so as to provide some enlightening suggestions for other enterprises.