Research On The Nature Of Property Rights Transformation And Equity Incentive Effect

Equity incentives have a very large role in the existence of enterprises.They can not only solve the problem of principal-agents of business owners and management,but also attract external talents to promote long-term development of enterprises.China's economic background is different from other countries,and it is very special.Therefore,when studying equity incentives,it will inevitably involve the property rights of enterprises.Then,will the change in the nature of property rights have an impact on the effect of equity incentives? Shanghai Jahwa has experienced a process of property rights transformation and is a good analysis object.Therefore,this paper selects three equity incentive plans implemented during the eleventh year from 2007 to 2017 to analyze the design of enterprises before and after the change of property rights.The differences and the effects of incentives,the progress and shortcomings before and after comparison,hope to explore the impact of property rights on the effect of equity incentives through this representative enterprise.This paper uses methods such as case analysis,literature research,comparative analysis,financial analysis.The text consists of six chapters.The first chapter summarizes the literatures of domestic and foreign scholars on the relationship between equity incentives and the nature of property rights and equity incentives.The second chapter elaborates the theory of equity incentives and lays a theoretical foundation for the research of this paper.The third chapter explains the background of Shanghai Jahwa,the motivations for implementing incentives and the influencing factors.The fourth chapter compares the three incentive schemes of Shanghai Jahwa,analyzes the differences between the schemes,and conducts effect research based on this.The fifth chapter mainly analyzes the implementation effect of the non-financial indicators of Shanghai Jahwa and the changes of related financial indicators.Among them,the nonfinancial indicators are mainly analyzed from the improvement of human capital and the strengthening of scientific research innovation.The financial indicators are used to study the market reaction through the event research method,and the vertical comparison of the four financial capabilities of the enterprises before and after the implementation of the three programs.Analysis,and then how the effect of equity incentives before and after the change in property rights.Chapter 6 gives questions and suggestions and summarizes the text.The research in this paper finds that Shanghai Jahwa's incentive and autonomy of equity incentive schemes is better than that of the state-owned period after the transformation of property rights.It has brought positive effects and attracted a large number of outstanding talents for Shanghai Jahwa.But the shift in the nature of property rights has also brought about some problems.First,the increase in autonomy has led to short-sighted behavior by management and reduced the proportion of research input.Secondly,the incentives have improved,but the setting of the plan is still not perfect.The lack of reserved shares affects the attractiveness of the company to excellent talents.The setting of the unlocking conditions makes the company eager to achieve and increases the management's manipulation of profits and financial fraud.Risk,the third program is due to the excessively aggressive setting,which has caused huge losses to the company's performance.In response to these problems,this article has given corresponding recommendations.In terms of validity period,it is recommended that Shanghai Jahwa should be extended to 6 to 8 years in a reasonable and reasonable manner;in terms of reserving shares,it is recommended that enterprises set up appropriate reserved shares in time according to changes in policies;in terms of unlocking conditions,enterprises are recommended to introduce more comprehensive EVA indicators for equity incentives.