Evaluation Of Equity Incentive Effect Of Listed Companies In China

As one of the earliest and most competitive industries in China,the home appliance industry has been upgraded from the original price competition to the comprehensive strength competition of brand,technology,management,service and so on.In order to build an excellent management team and further enhance the R & D strength and market competitiveness of enterprises,listed companies in China’s household appliances industry are competing to launch equity incentive plans.Qingdao Haier Co.,Ltd.is one of the leading enterprises in domestic household appliances industry and a typical representative of listed companies in China’s household appliances industry.Therefore,this paper takes principal-agent theory,human capital theory and incentive theory as the theoretical basis of equity incentive,and explains the relevant factors involved in equity incentive,the ways and effects of different incentive methods.This paper selects Qingdao Haier as the case study object of this equity incentive,synthesizes its development course and analyzes its current stage implementation equity incentive motivation,at the same time introduces the content and the implementation result of each phase equity incentive.This paper mainly uses the literature research method,the event research method,the financial index method,the efficacy coefficient method and so on research method,has carried on the analysis to the four times equity incentive single equity incentive effect and the cumulative incentive effect.During the evaluation of the single incentive effect,the event research method is used to study the stock price fluctuation and its EVA change near the event day,and the financial index method and the efficacy coefficient method are used to analyze the results in the evaluation of the cumulative effect.The results show that the price of Qingdao Haier’s stock has been up and down many times,the market effect is positive,the stock price has been improved in the short term,and there is no significant change in the long term;After implementing the equity incentive plan,Qingdao Haier stabilized the management and core technicians and improved the financial performance of the company.Through the study of this case,this paper finally gives reasonable suggestions and hopes to provide some guidance and reference to other domestic home appliance industry listed companies.It also lays the groundwork for further optimization of equity incentive methods and study of employee stock ownership plans.