Research On The Motivation And Effect Of Equity Incentives In Listed Companies In China

Since the society entered the era of knowledge economy,the core competitiveness of enterprises has gradually tended to be the level of human capital ownership and the potential value development of human capital.However,traditional and simple labor contracts do not guarantee that knowledge workers can work better and more consciously,nor can they effectively supervise and constrain them in management methods.The implementation of equity incentives can make up for the lack of traditional management methods and measures to a certain extent.Therefore,it is of great significance to study the motives and implementation effects of the company's equity incentive plan,it can help companies better implement equity incentives and maximize results.This paper intends to analyze the motivation of the Midea equity incentives and the effect of equity incentives to explore whether the equity incentives can achieve the intended purpose of the enterprise and help the enterprises solve some problems,and based on the advantages and disadvantages of the case company in the implementation of equity incentives,can make some specific recommendations for other companies to refer to.Firstly,it introduces the background and significance of the topic,and expounds the main research contents and some related research methods.Secondly,it mainly introduces the current situation of equity incentives of listed companies in China,chose a typical manufacturing company Midea,take Midea as the entry point and use case studies to specifically study the implementation and effectiveness of equity incentives.The case study first introduces some basic conditions and industry status of Midea,which shows that it is a company worthy ofstudy.It then introduces its equity incentive plan and implementation progress,and combines SWOT analysis method to analyze the reasons for the implementation of equity incentive.The following is an analysis of the effect of the implementation of the equity incentives of Midea.Combined with the financial index analysis method,comparative analysis method and BSC analysis,it is concluded that the effect of the Midea's implementation of equity incentives is remarkable,which is reflected in the stock price increase,the profitability is significantly improved,and the development capability has gradually increased,the ability to innovate and the proportion of talents have been greatly improved.Finally,combined with the previous analysis,some inspirations and related suggestions are obtained.It is found that equity incentives not only improve financial performance,but also optimize non-financial performance.The effects of different equity incentive schemes are different.It is suggested that the selected equity incentive exercise indicators should be further optimized.When designing the equity incentive plan,it should be considered in many aspects,depending on the position.This paper selects some representative indicators to analyze the effect of Midea's equity incentives,and concludes that Midea's implementation of equity incentives has a positive effect on its business performance.Therefore,the implementation of equity incentives should improve the performance of listed companies,and also play a theoretical reference and data support for the implementation of equity incentive plans for listed companies in China.