Research On Implementation Effect And Impact Mechanism Of Equity Incentive In Gac Group

With the booming economy,market competition has become more and more intense,and the competition for talents among enterprises has also become more and more intense.In order to retain talents and enhance core competitiveness,equity incentive has come into being.Equity incentive originated in western countries and was widely used in the 1990 s,and has now entered a mature stage.In the 1990 s,China just introduced equity incentive to the market,and the development is lagging behind,and there are very few successful models for different companies to implement equity incentive in different industry environment and internal organization,so it is difficult to achieve good incentive effect smoothly.Therefore,this paper selects GAC Group as a case study to investigate the effect and influence mechanism of its equity incentive implementation,so as to provide an important theoretical basis for listed companies to better use this system and accumulate valuable practical experience.This paper selects GAC Group as a case study and firstly analyzes the plan and implementation of the three phases of equity incentives implemented by GAC Group between 2014 and 2020,and then analyzes the effect of the implementation of equity incentives from the following two aspects: on the one hand,the financial performance of GAC Group before and after the implementation of the incentive plan from the perspective of traditional financial indicators;on the other hand,the event study method is used to analyze the market reaction of the three phases before and after the announcement of the draft incentive plan with the help of statistical tools.Meanwhile,the market reaction before and after the announcement of the draft incentive plan is analyzed by using statistical tools.Finally,we analyze the mechanism of the effect of equity incentive of GAC Group.The following conclusions are drawn from the analysis:firstly,the implementation of the first phase of the equity incentive is more effective than the last two phases,and the operating capacity,profitability and growth capacity are all improved and enhanced.Secondly,we analyze the impact mechanism through two dimensions:technology innovation and corporate governance,and find that in terms of technology innovation,equity incentive significantly improves capital investment and innovation output and strengthens platform construction;in terms of corporate governance,it strengthens talent construction and optimizes internal control.Finally,through the previous analysis,we found that GAC’s equity incentive plan is not sufficiently motivating,the design of performance indicators is not comprehensive,the incentive model is single and the equity incentive plan of each period lacks linkage,and put forward improvement suggestions based on the above deficiencies.