Research On The Analysis On The Motivation And Effect Of The Equity Incentive Of Zhongzhou Holding Company

Since my country’s share-trading reform,listed companies have begun to implement equity incentive plans one after another.With more and more companies implementing equity incentives,the implementation effect of equity incentives has attracted the attention of the capital market.According to statistics from the Cathay Pacific database,from 2005 to 2020,a total of 4,714 listed companies in my country have implemented equity incentives.Although the equity incentive plan has been highly praised by many industries in recent years,it is puzzling that it has suffered a cold reception in the real estate industry with strong capital and strong demand for talents.In order to solve this confusion,this paper selects Zhongzhou Holdings,a listed real estate company,as the research object,analyzes why Zhongzhou Holdings chooses equity incentives,and discusses whether equity incentives have an improvement effect on the performance of Zhongzhou Holdings and the real estate industry.Combined with the status quo of equity incentives in the real estate industry,this paper uses the method of case analysis to explore the impact of equity incentives on company performance.Next,this paper analyzes the motivation of Zhongzhou Holding’s implementation of equity incentives from the micro,meso and macro levels.After that,it deeply analyzes the effect of equity incentives on Zhongzhou Holdings.This paper makes a horizontal comparison between the financial indicators of Zhongzhou Holdings and the industry average and the financial indicators of companies that have not implemented equity incentives,and also uses the EVA method to analyze the economic added value of Zhongzhou Holdings.Not only that,this paper also analyzes the impact of equity incentives based on the non-financial indicators of Zhongzhou Holdings.In addition,this paper uses the excess return method to find that some indicators of Zhongzhou Holdings have declined,and the company’s response in the stock market is mediocre.Finally,this paper conducts an in-depth study on the equity incentive mechanism of Zhongzhou Group,and believes that the equity incentive effect of Zhongzhou Holdings can be reflected in the construction of a community of interests,limiting the short-sighted behavior of managers,and attracting and retaining excellent employees.By studying the equity incentive plan of Zhongzhou Holdings,this paper draws the conclusion that: the equity incentive plan of Zhongzhou Holdings makes the company’s financial performance outstanding in the short term,but in the long run,the equity incentive plan does not bring long-term benefits to Zhongzhou Holdings.Positive effect.In addition,this paper expands the existing equity incentive theories and enriches the theory of equity incentives on the value growth of enterprises.Not only that,this paper analyzes the reasons and background of Zhongzhou Holding’s implementation of equity incentives,and suggests that other listed real estate companies should formulate their own company-specific equity incentive plans from the perspective of their own operations.