Research On The Implementation Effect And Influencing Factors Of Equity Incentive In S Household Appliance Company

With the separation of ownership and management in modern enterprises,the principal-agent problem between owners and operators is becoming more and more prominent.Equity incentive plays an important role in resolving the conflict between the two sides Since2006,China Securities Regulatory Commission has issued policies related to equity incentive one after another.More and more listed companies have begun to adopt equity incentive to provide long-term incentive to employees.However,in the actual implementation process,the implementation effect of different companies is widely different Therefore,it is of great significance to study the implementation effect and influencing factors of equity incentive for listed companies to improve their employees’ enthusiasm and initiative in work and realize their own sustainable development.The research object of this paper,S Home Appliance Company,was listed on the Shenzhen Stock Exchange in 2004.In 2007,S Home Appliance Company was acquired by foreign investors,and the property right of S Home Appliance Company was transformed from a private enterprise to a foreign-funded enterprise This paper S home appliance company nature of property right change before and after the four Qi Gu Quan incentive,using literature research analysis S home appliance company in different stages of implementation of equity incentive plan,using event study analysis factor analysis financial indicators and non-financial indicators analysis,from different angles to explore the effect of equity incentive plan.On this basis,the influence factors of equity incentive are studied,internal environmental factors,external environmental factors and equity incentive system factors are analyzed,and the influence of various factors on the implementation effect of equity incentive is analyzed.Through the research,this paper believes that under the background of private enterprise property rights,S Home Appliance Company’s equity incentive is more inclined to the welfare system to help executives and family members seek benefits In the stage of foreign-funded enterprises,in order to attract and retain core talents,the enterprise extends the incentive scope to middle management and core technical personnel,and sets reasonable assessment indicators and lower award price,which is more in line with the needs of the company’s long-term development Therefore,this paper puts forward four suggestions for improving the conditions and assessment indicators of enterprise design exercise rights: enterprises should reasonably choose incentive objects;Set a reasonable grant price;Proper extension of incentive validity;By setting appropriate exercise index value and introducing non-financial index,this paper hopes to enlighten S Home Appliance Company in designing equity incentive plan and improving incentive effect in the future.