Research On The Influence Of Equity Incentive On The Market Value Management Of Midea Group

Since the reform of non-tradable shares,equity incentive has gradually become a longterm incentive mechanism.The agency problem caused by the separation of ownership and management rights of the company has also been solved to some extent.Using stock options,restricted stocks and other ways to motivate the executives and core technical personnel of enterprises can reduce costs,bind the interests of enterprises with employees,improve the business performance of enterprises,and promote the value realization of enterprises in the capital market.In May 2014,the market value management system was formally put forward,and the State Council issued the "Nine Articles of New China",which divided the market value management of enterprises into three parts:value creation,value realization and value management.The concept of equity incentive and market value management was put forward relatively late,and the research involved mainly focused on the financial performance and market reaction brought by equity incentive,and all of them were split studies.However,it is not comprehensive to measure the impact of equity incentive on market value management from a single aspect,and there are few theoretical studies on the correlation between equity incentive and market value management,mainly using empirical analysis to study the impact of equity incentive on business performance and market,lacking the research of case-based enterprises.Market value management of enterprises can promote agents to focus on the capital market,which is conducive to the long-term development of enterprises.Equity incentive is an important means of market value management of enterprises.Studying the impact of equity incentive on market value management of enterprises has practical significance for the long-term development of enterprises.In this paper,the literature on equity incentive and market value management is sorted out,taking Midea Group as a case,and by constructing the evaluation system of "equity incentiveagent behavior-value creation and value realization-market value management evaluation system-market value management",the multi-level equity incentive of Midea Group from 2014 to 2020 is analyzed,and the equity incentive schemes are designed hierarchically for different incentive objects.By encouraging agents to create and realize value in product market and capital market,enterprise executives can create value for enterprises in product market by optimizing enterprise talent structure,increasing R＆D investment and optimizing product structure.Our country is in a weak and efficient market,and the value of enterprises can’t be fully reflected.Equity incentive urges enterprise executives to take the initiative to pay attention to market value management,and actively use information disclosure,stock price stabilization policy,and stock holdings to provide good news to the market,so as to realize the value of enterprises in the capital market.Then,judging its value management performance through the reaction to Midea Group’s operating performance and capital market,it is concluded that equity incentive of enterprises has a positive promoting effect on market value management.Finally,according to the role of equity incentive in market value management,this paper points out its shortcomings,and puts forward some targeted suggestions,providing some theoretical guidance for Midea Group and enterprises that manage market value by implementing equity incentive.