Research On The Implementation Effect Of Stock Incentives For Online Gaming Industry

The development of stock incentives in my country is relatively late compared with Western countries,but after the gradual development in recent years,from the issue of the "Measures for the Administration of stock Incentives for Listed Companies" by the Securities Regulatory Commission in 2006,to the formal inclusion of stock incentives in the The Law of the People’s Republic of China marked that stock incentive system in China has gradually entered a mature stage.At present,companies in China generally use equity incentives as a strategic tool to solve agency problems,improve company performance,and motivate staff.With the continuous development of the national economy,the people’s consumption level has been continuously upgraded.At present,the proportion of entertainment consumption in people’s daily life is gradually increasing,and the online game industry is also gradually developing in China.The online game industry belongs to the Internet industry and likes a technology-intensive industry.Because the current domestic industry competition environment is very fierce,and the leading companies have been monopolized the market share in a certain degree,the development of the new game,the maintenance of game life cycle,and the user acquisition,all aspects have become the focus of enterprises in the industry.In addition,the competition and loss of staff in the industry are very serious.Equity incentives have become a popular incentive method in the industry.This article takes the online game industry as a whole,and selects a typical enterprise Kunlun as an example to analyze the current situation and characteristics of the implementation of the industry’s equity incentives.Kunlun had been listed on the Shenzhen Stock Exchange in 2015.It released its first equity incentive plan within three months after listing,and subsequently implemented three equity incentive plans.This article is based on human capital theory,principal-agent theory,incentive theory and other theories,using literature research method,case analysis method,event research method,comparative analysis method and other research methods.Starting from the characteristics of the online game industry,it analyzes the motivations for the implementation of equity incentives and the overall implementation situation,and compares the case companies with the industry as a whole in terms of implementation effects.First,it explains the motivation and the stock incentive plan of Kunlun ’s implementation of equity incentives,and then analyzes whether the implementation effect has achieved the purpose of its release from the three perspectives of market,business and finance.In terms of market effects,the event research method was used to analyze the short-term market performance around the announcement date of the four equity incentive plans.In terms of business effects,based on its implementation motivation and industry characteristics,it analyzes its market share,user activity,strategy implementation,corporate governance structure improvement,and talent incentives.In terms of financial effects,the implementation effects are analyzed from the main activities of investment,fundraising,and operation of the three companies,and at the same time,the overall situation of the industry and the situation of companies that implement equity incentives and those that do not implement equity incentives are compared.Through this horizontal and vertical comparative analysis,the implementation status of the case company including the overall equity incentives of the industry is obtained,and the mechanism of the role of equity incentives of online game companies on the human capital to achieve the corresponding implementation effects is sorted out,and the existing problems are analyzed and suggestions for improvement are finally put forward..This article is representative in the selection of industries and cases.It is hoped that through the research of this topic,it can provide a certain reference for companies in the industry to implement equity incentives in the future.