Analysis Of The Incentive Effect Of Equity Incentive For Core Employees Of Listed Companies

With the expansion of the business scope and scale of modern companies,the management of the company needs a high degree of specialization.Therefore,the owners of the company usually entrust the company to the professionals to operate,and the separation of the two rights has become a common phenomenon.In the case of information asymmetry,the company ’s operators may damage the company ’s interests for their own interests,increase the company ’s agency costs,and generate principal-agent problems.Equity incentives transfer part of the residual ownership of the company ’s owners to the company ’s operators,so that the goals of the two can be agreed to a certain extent,thereby reducing the agency costs of the company.With the development of science and technology and the globalization of economy,the competition among companies is becoming more and more fierce.Only by retaining talents with core technologies and attracting new talents,and building an excellent talent team can they survive and develop in the fierce market competition.Therefore,more and more enterprises begin to pay attention to the core employees,a group that masters core technologies and core businesses,and more and more equity incentives are carried out for core employees.At present,most of the research on equity incentive at home and abroad focuses on the scheme design,incentive effect and impact on enterprise innovation of equity incentive.Only a few studies focus on the incentive object and most of these studies are based on empirical research.In view of the equity incentive for core employees,the academic circles are also divided into two viewpoints : ’ effective incentive view ’ and ’ ineffective incentive view ’.In order to analyze whether the equity incentive of core employees is effective,this paper chooses Feilihua’s equity incentive of core employees in 2015 and compound equity incentive in 2017,which have been successfully exercised,to compare and analyze the incentive effect of the two equity incentives from four aspects : short-term market reaction,human capital situation,enterprise agency cost and enterprise performance.From the perspective of short-term market reaction,the excess cumulative return rate of core employee equity incentive is positive,and the excess cumulative return rate of compound equity incentive is negative.The core employee equity incentive is better than the compound equity incentive in the shortterm market reaction,indicating that the market is more optimistic about the core employee equity incentive.From the perspective of enterprise human capital,core employee equity incentive can significantly improve the human capital of enterprises,which is conducive to the construction of talent team.From the perspective of enterprise agency cost,it also has a significant effect on reducing the cost of the enterprise,but core employee equity incentive has no obvious effect on the short-sighted situation of employees,and the compound equity incentive has a better effect in this regard.In terms of business performance,this paper finds that core employee equity incentives are also better than compound equity incentives in improving corporate profitability,growth ability,operating ability and solvency.Through the results of the case analysis in this paper,we hope to supplement the research on the core staff as the object of equity incentive,and also hope that other enterprises can get some inspiration from the conclusion of this paper when choosing the incentive object in the design of equity incentive scheme.