Research On The Motivation And Effect Of Equity Incentive In Jiuyang

Equity incentive can improve the performance of the company,stabilize the governance structure and stimulate the enthusiasm of employees.However,the equity incentive system is still to be improved,and the equity incentive mechanism is not mature.In the actual equity incentive process,there will be many uncertain factors,resulting in many problems such as damaging the interests of the company after the implementation of equity incentive.How to objectively evaluate the changes brought by equity incentive to the development of enterprises is a topic of common concern in theory and practice.In this paper,the third equity incentive policy of Jiuyang Shares is selected as the research object,and the motivation and effect of the equity incentive of Jiuyang Shares are studied.First of all,it introduces the background and significance of the implementation of equity incentive,the domestic and foreign references for the implementation of equity incentive policies,and introduces the concept and theoretical basis of equity incentive,based on which the research work of this paper is carried out.Subsequently,this paper introduces financial index,non-financial index and event research method,comparative analysis method and other research methods to analyze the data of Jiuyang Stock’s financial statements in ten years.In order to more intuitively show the impact of Joyang’s implementation of equity incentive on the enterprise,this paper introduces Supor,Changhong and Mealing,two homogeneous competitive enterprises,to compare their economic development status in the past ten years,so as to discuss whether different equity incentive measures carried out by Joyang in different historical periods can improve the development status of the enterprise.Provide countermeasures and suggestions for the transformation of Jiuyang Shares to innovative enterprises,and provide reference for other enterprises.The results show that,from the perspective of market reaction,the stock price of Joyang Stock fell rapidly after the first equity incentive,and increased significantly after the second and third implementation.It can be seen that the impact of different timing incentives is different.From the perspective of financial indicators,after the implementation of equity incentive in 2014 and 2018,the operating effect of the enterprise was improved and the gap between the enterprise and similar enterprises such as Bear Household Appliances and Supor was narrowed.From the perspective of target completion degree,the first equity incentive was declared a failure after 6 months of implementation by emergency suspension,while the second and third time successfully completed the target unlock exercise conditions.Through the analysis of the reasons for the economic effect of equity incentive,the following suggestions are made: for enterprises to carry out incentive measures,the implementation of equity incentive policy should first predict the market environment correctly and choose the right time to carry out equity incentive;As for the target of incentive,the scope of incentive should be expanded,not only to the senior managers,but also to the core technical staff and the newly recruited high-tech talents.For enterprises,it is necessary to establish a scientific internal performance appraisal system,strengthen talent management,prevent brain drain and tap the potential value of talents.