Research On The Effect And Countermeasures Of Equity Incentive In Listed Companies

Wquity incentive is a long-term system for all employees,which is conducive to helping enterprises reduce agency costs,improve management construction,and train talent teams.Equity incentive system was formally introduced into China in 2005.Although it has been implemented for a short time compared with western countries,it has been applied to many listed companies under excitation of China's strong market vitality.Under the influence of the market environment and the internal governance structure,the listed companies in China have some problems in the process of implementing the equily incentive In view of this,this paper analyzes the implementation effect of equity incentive by selecting case enterprises and puts forward corresponding Suggestions.By reviewing the academic research of equity incentive at home and abroad,this paper uses literature survey to establish the theoretical basis and research framework.After the basic theory,it expounds the specific equity incentive plan,analyzes and evaluates the equity incentive plan and implementation results of Midea Group by using financial data and non-financial data.During the period,it analyzes the operation ability,profitability,debt paying ability,development ability and economic added value of the enterprise as well as the agency cost,personnel mobility through non-financial data Research and development and innovation,market competitiveness analysis.It finds out the problems and puts forward constructive suggestions,points out the enlightenment brought by its successful experience,and provides reference and experience for the listed companies to implement relevant programs in the future.By studying the degree of influence on performance of Midea Group's implementation of equity incentive system,it shows that the implementation of equity incentive system can completely improve the peformance of many listed companies.Before the implementation of the new equity incentive system,it is necessary to improve the internal governance structure of enterprises,and then formulate a diversified and scientific equity incentive plan,especially pay attention to the long-term equiry incentive Effectiveness.