Case Study Of Jiu Yang Stock Equity Incentive

With the rapid development of China’s economy,there are many outstanding enterprises in our country that are becoming more and more outstanding in the market.In the face of increasingly fierce industry competition and market competition,in order to make the enterprise invincible,Chinese companies must mobilize all employees to work hard for the enterprise.Enterprises usually use incentives to give company rights to employees,so that employees are more aware of corporate members and can more closely participate in corporate management operations.In modern society,equity incentive is a commonly used incentive method for modern enterprises.It is an enterprise operation tool that retains highly educated and capable core employees,effectively reduces agency costs,and stabilizes internal talents.By closely linking the interests of employees and the enterprise,it is more conducive to the common progress of the enterprise and the employees,thereby making the enterprise more stable and long-term development.As a member of China’s home appliance companies,Jiu yang Co.,Ltd.has become a household appliance company well-known in our country because of the rapid development of soymilk makers and sales.It has reference significance for its research.This article studies the equity incentive plan implemented by Jiu yang in 2014.During the writing of this article,the data samples selected are the data from Jiu yang’s 2012-2018 annual report and 2019 quarterly report.First summarize the theories related to equity incentives and the conclusions that other scholars have researched in the previous period,and then discuss why Jiu yang shares implement equity incentives from internal and external motivations.Then it analyzes the effects of equity incentives on Jiu yang shares from three aspects: decision-making behaviors of managers,operating performance,shareholders’ equity,and market effects.Finally,it was concluded that the determination of the exercise conditions,price,and exercise scope of Jiu yang Co.,Ltd.meets the requirements of enterprise development.After implementation,the company’s performance and shareholders’ equity have been improved,resulting in a good market effect.The success of Jiu yang’s equity incentives is worthy of reference from other companies in the industry.At present,there is not much research on equity incentives in the home appliance industry.In my research on Jiu yang’s 2014 equity incentive plan,I can put forward relevant opinions and suggestions to enrich the equity of listed companies in China’s home appliance industry with his own modest efforts.The effective use of incentives has further increased the content of case studies on equity incentives in China.