Research On The Causes And Economic Consequences Of Equity Incentive Plan Revision

Under the modern enterprise system,ownership and management are separated.In order to solve the problems of moral hazard and adverse selection,the equity incentive system has become an indispensable "weapon" for listed companies to improve corporate governance and governance capacity,and has entered the era of "normalization".However,in recent years,the stock price of many companies implementing the equity incentive is lower than the exercise price due to the drastic fluctuations in China's stock market,which leads to an increasing number of companies ceasing to implement the equity incentive plan.Therefore,whether the company should revise the equity incentive plan is widely concerned by the society.Taking hypergraph software as an example,we analyze the causes and consequences of corporate equity incentive plan revision.The motivation of equity incentive plan revision lies in the forced choice under the change of external environment factors,the reduction of core employee turnover,and the improvement of the company's core competitiveness.It is found that during the announcement of the cancellation of the first equity incentive plan,the stock market gave a negative reaction.During the announcement of the equity incentive plan,hypergraph software received a positive market reaction.Compared with the pre-plan revision and the industry average,in the three years after the revision of the hypergraph software,the enterprise's profitability,operating efficiency,and development prospects have improved significantly.In general,the equity incentive plan of hypergraph software has improved the enterprise value.Finally,this paper discusses the problems existing in the process of implementing the equity incentive plan by hypergraph software and the practices worthy of reference.On this basis,it puts forward some Suggestions on how to effectively implement the equity incentive plan.