Study On Performance Of Equity Incentive Of Automotive Listed Company

In the operation and management system of modern corporate,the separation of the right of management from the right of ownership leads to severe conflict between operator and owner.Problems such as information asymmetry and conflict of interest have bad influence on operation and development of corporate.Thus,it is necessary to apply an efficient incentive method to harmonize the interest of employee and corporate.Equity incentive could stimulate the management ability of operator,bonding their interest with that of corporate.As a result,operator could make decision from the perspective of the whole corporate,facing quantities of situation.Then it is easier to reach the goal of better operation and shareholder value maximization.However,as there are many model of equity incentive,certain equity incentive plan suits different enterprises.Therefore many corporates fail at the beginning of design of equity incentive plan.Some management layer even seeks for private interest through equity incentive.This paper takes the first equity incentive plan of Guangzhou Automobile Group as an example and introduces its model,objects,exercise arrangement,etc.Then this paper estimates how equity incentive influences the performance of Guangzhou Automobile Group,comparing the variation of financial and nonfinancial indicators.In this analysis,in the matter of financial performance,the equity incentive plan has a positive effect on Guangzhou Automobile Group,whose debt paying ability,profitability and operation capacity increase distinctly.On the other hand,the non-financial indicators have positive variation,enhancing its ability for sustainable development.Generally,the equity incentive plan of Guangzhou Automobile Group enhances financial performance,optimizes human resourses and brings further positive market effect.It is successful if considering the results above.However,the equity incentive still has deficiency,such as narrowness of financial evaluation index and monotonous incentive model.Finally,this paper provides the successful equity incentive reference for corporates from the same industry.It is essential for other corporates to unify own actual situation and apply diversified equity incentive with proper objects and vesting conditions,achieving better incentive effect.